HSBC talks about its Shariah-compliant structured product in Malaysia

Malaysia's first Shariah-compliant dual-currency, structured investment product is now on offer. Here's how it works.

By Lara Wozniak

April 26, 2006

As Malaysia continues to try to establish itself as the Asian hub for Islamic financing, HSBC has stepped up its offerings. Earlier this month, HSBC Bank Malaysia launched the nation's first Shariah-compliant consistent with Islamic law dual-currency, structured-investment product.áHSBC's Adrian Loo,áhead ofáwealthámanagementásales, Malaysia, talks about the new offering.

What is this new structured product

The HSBCáAmanah Islamicádualácurrencyástructuredáinvestment is an Islamic compliant version of a dual currency structured product. It is made of two components.

The first part is the ôCommodity Murabaha-Iö, which you may know is based on the concept of ædeferred payment saleÆ. That concept ensures that the underlying is an actual commercial transaction, which is required under Shariah law.áIt allows...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222