Islamic Hybrid Instrument 3

Islamic Hybrid Instrument 3

The Islamic Hybrid Instrument (IHI) is the latest addition to the participation in IGD Group’s (IGD) business.This IHI aims to generate consistent returns with minimum volatility over a short to medium term.Under the normal business trade, the gross profi t margin is derived from business activities involving trading and manufacturing of gold articles,jewellery, IGD objects, gold mining and logging operations.The profit to be distributed to each party is therefore being ratio of 50:50.

Option 1: Pegged Principal and Profit
The principal and profits are pegged at the IGD selling rate and paid out at that rate regardless of the prevailing IGD rates.

Option 2: Float Principal and Profit
All transactions are in IGD.The principal and profits float according to the prevailing IGD rate.

• Minimum participation
  150 IGD
  
• Upfront fees
  None
• Maturity date
  Depending with choice of participation
  
• Payment of profit distributions
  Quarterly
• Early termination
  In the event of a request for an early termination by the Rabb al Mal, all monthly profits paid out, as at the date E-Qirad receives the Rabb al Mal’s request for a refund, will be deducted and returned to E-Qirad. The balance of participated IGD will then be refunded.

Posted by syarifuden at 5:58 PM
Monday, January 8, 2007

Content take from http://gold-dinar.blogspot.com/