Raising redeemable capital through musharakah TFCs : a case of quasi

الملخص EN

This narrative study depicts the situation of a company whose founding CEO wanted to extricate the company from the interest-based borrowing and deputed its CFO to find a way out through any mode compliant to the Shar¯i‘ah, so to retire its existing debt and also to get further financing through Islamic modes of financing.

The study discusses the scenario and further the reasons and modalities of choosing a mode of financing i.e.

mush¯arakah based Term Finance Certificates (MTFCs).

The study develops a deeper understanding of the transition from interest-based financing to the development of MTFC, as a financing tool and the choice of the specific type of instrument by the company.