Sukuk al-Intifa’a

Al-Intifa’a Sukuk, also known as "Asset Backed Sukuk" or "Asset Based Sukuk". It gives its owner the right to use a property for a specified period of the year and for a number of known years. Intifa’a Sukuk is basically a variant of Ijara Sukuk, the issuer divides the right of use (Intifa’a) of an asset over a predetermined period of time into specific units and transfers these rights to Sukuk holders.

Al-Intifa’a Sukuk permits issuers to raise funds through the sale of rights to upcoming income streams produced by assets. The assets may be physical (real estate or infrastructure projects), or financial (accounts receivables or leasing contracts).

Characteristics of Sukuk al-Intifa’a:

• It represents limited rights to real estate being utilized;
• The limited rights on the real estate are associated with a limited period of time (tenure);
• A method of obtaining long-term periodic use of residential units without requiring full ownership of the property;
• Sukuk will be backed by the real estate asset or the cash flows generated by the asset, not by the Sukuk issuer;
• It is a tradable instrument.

Examples of Al-Intifa’a Sukuk:

• IRB6NF0203C8 - National Iranian Oil Company (NIOC), 18.5% 7mar2025, IRR (NF2Q)
• IRB4SF840255 - Iran, Bonds 18% 27jul2023, IRR (S84Q)
• XS0999501538 - Ooredoo QSC, 3.039% 3dec2018, USD