Asset Life Sukuk to Fund Utility Companies

  • Paolo Pietro Biancone University of Turin
  • Mohammad Ziad Shakhatreh University of Turin
DOI: https://doi.org/10.13135/2421-2172/1611
Keywords: Sukuk, ustility, redemption value, asset life.

Abstract

In response to a growth in the world population, there has been a growth in demand for utilities; In fact government and utility companies are increasingly looking to alternative sources of finance to meet these growing demands.

This paper will provide evidence that Sukuk is one of the vehicles for funding utilities which can fill the gaps between available sources and customer needs. A qualitative research approach has been used to examine the main characteristics of investment in the utility sector and compare them with Sukuk features. The paper explains the process of choosing and developing the Sukuk structure to fit the main originator objectives. The paper concludes that Sukuk can meet utility companies’ needs, and the paper suggesting that utility company can use the Sukuk structure with no redemption value.
Published
2017-03-13
How to Cite
Biancone, P. P., & Shakhatreh, M. Z. (2017). Asset Life Sukuk to Fund Utility Companies. European Journal of Islamic Finance, (6). https://doi.org/10.13135/2421-2172/1611
Issue
No. 6 (2017): EJIF - European Journal of Islamic Finance, 6, 2017
Section
Articoli

Authors keep the copyrights for their work and give the journal the work's first publication copyright, which is at the same time licensed under a Creative Commons License – Attribution, which in turn allows other parties to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

Most read articles by the same author(s)