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capital bond

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capital bond

In economics, an investment bond that is purchased by a single payment, set up for a fixed period, and offered for sale by financial institutions. The emphasis is on capital growth of the lump sum invested rather than on income.



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Aa A series of roadshows taking in Asia and the Middle East were held recently to gauge demand from investors for the GE Capital bond.
The project is funded by a capital bond issue passed last year, and so is independent of the troubles and belt-tightening affecting the current state budget.
Geoff Calvert, SHB's managing director, explained, "the SR775 million Mudaraba Sukuk is a Shariah-compliant follow-up to the bank's first Tier-II capital bond for 700 million that was issued in 2004.
 
 
 
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