What is a Bond?
A bond is a tradable security, issued by the borrower (bond issuer), representing a formal agreement to repay the lender (the bond holder) the principal amount plus interest over the lifetime of the bond.

• Issuer – an organisation raising capital through the bond and at the same time borrowing money from bond investors (can be Corporations or the Government).
• Principal/nominal value/par value – the amount borrowed on which interest is paid.
• Redemption, maturity – the date on which the issuer agrees to pay back the principal amount.
• Coupon rate – the annual rate with a determined amount of interest paid to the borrower at regular intervals..

What is a Sukuk?
All of the above apply to Sukuk as well. In terms of investment and trading, it is similar to a bond only that it is structured according to the principles of Islamic Finance. The most obvious difference to the investor is that the returns to the investor are paid via the “Profit Rate”

• • Danainfra 3.74% 7/2/2022
• • Redemption = 7 Feb 2022
• • Profit/Coupon rate = 3.74%
• • Interest paid semi-annually (every 6 months)
• • For example, a holding of MYR 10,000 nominal would generate interest payments of MYR 187.00 every six months (or MYR 374.00 for each year) for a total of ten years.