• A bond represents a debt owed to its holder.
• A partnership (مشاركة) certificate represents direct ownership in a proportion of project assets.
• Its holder is therefore an owner to that extent, not merely a creditor.
• This ownership difference determines how the certificate may be traded.
Keeping the legal roles clear prevents the arrangement from being treated like a fixed-return loan. Capital, management, ownership and profit entitlement should each follow the role actually undertaken.
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Securitization of partnership (مشاركة)
• A bond represents a debt owed to its holder.
• A partnership (مشاركة) certificate represents direct ownership in a proportion of project assets.
• Its holder is therefore an owner to that extent, not merely a creditor.
• This ownership difference determines how the certificate may be traded.
Keeping the legal roles clear prevents the arrangement from being treated like a fixed-return loan. Capital, management, ownership and profit entitlement should each follow the role actually undertaken.