Islamic finance and Mezzanine: Difference between pages

Revision as of 21:25, 23 October 2014

Mezzanine debt is capital designed to be in between equity and debt in respect of both risk and expected return.

Often used in Venture Capital.

The term derives from 'in between' mezzanine floors in buildings.

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-Islamic finance is a widely used colloquial term for sharia-compliant finance.
+Mezzanine debt is capital designed to be in between equity and debt in respect of both risk and expected return.
-Sharia-compliant finance arrangements are ones which are in accord with sharia law.
+Often used in Venture Capital.
+The term derives from 'in between' mezzanine floors in buildings.
-In sharia-compliant finance and banking products, profit must be derived from commercial risk-taking and trading only, and all forms of interest are prohibited.
-Sharia-compliant finance models therefore operate on the basis of risk sharing, to encourage operational investments which may be of benefit to the community.
+== See also ==
+* [[Corporate finance]]
+* [[Hybrid]]
+* [[Venture capital]]
-Furthermore, commercial investments should only support practices that are permitted. Thus, for example, trading in alcohol, pornography, financial services, pork, armaments, tobacco, gambling and other activities contrary to sharia law are not allowed.
+== Other links ==
-==See also ==
+[http://www.treasurers.org/node/10048 Mezzanine debt, The Treasurer, April 2014]
-* [[General Council for Islamic Banks and Financial Institutions]]
-* [[IIFM]]
-* [[Ijara]]
-* [[Murabaha]]
-* [[Reverse murabaha]]
-* [[Riba]]
-* [[Sharia-compliant fixed income capital markets instruments for cross-border transactions]]
-* [[Sukuk]]
-[[Category:The_business_context]]
+[[Category:Corporate_finance]]