Q: What is Musharaka Bond about? A: Muis has issued a S$25 million Musharaka Bond issue (bonds) to partially finance its acquisition of a six-storey commercial building in Beach Road for wakaf purposes. Wakaf properties in undesirable locations which bring in very little returns will be transferred to this commercial building. This will bring in greater returns for the wakaf and its beneficiaries (specified mosques, madrasahs, etc). The proceeds from the sale of the wakaf properties would be used to partially finance this building. The building is located next to Raffles Hotel. It is expected to bring in a yearly return of $1.4 million for the wakaf which is located at a prime location and is fully tenanted. The bonds, which are being managed by UOB Asia Limited, are the first of its kind to be launched in Singapore. It has been approved by a panel of Islamic scholars specialising in Islamic financing appointed by Muis. Q: What is the size of the bond issue? A: 25 million Singapore dollars Q: What is the denomination of the bonds? A: $250,000 Singapore dollars Q: Why is the offer is confined to institutional buyers? Could the mosques and public buy them in a small amount? A: The bond issue is quite small i.e $25 million. It would not make commercial sense as the transaction cost for a public issue is high. Furthermore, getting institutional buyers would protect the interests of the wakaf. The Mosque Investment Fund (collective investment of 16 mosques) will be purchasing some of the bonds. Q: What are the likely returns? A: A return of 3.5% per annum for a period of 5 years for bond investors. Q: Who are the Islamic scholars who have approved the structure of the bond? What is the religious view/stand on the musharaka bond - the first in Singapore? A: Muis formed a Shariah panel to review the structure of the bond and ensure it is Shariah compliant. The panel comprises Dr Daud Bakar (Dean, Centre of Post-Graduate Studies, Islamic International University of Malaysia), Dr Yahia Abdul Rahman (Founder of LARIBA - an Islamic