They are a kind of securities showing the joint ownership of the bondholder on a certain amount of future benefits resulting from the use of assets or the provision of certain services and any certain transferable rights for a certain period of time.

Basis Contract of Manfaat Bonds

The basic contract of Manfaat bonds is Ijarah (lease), and the investors will own the interests of durable assets based on the lease contract.
Proviso: If the asset basis of Manfaat bonds is a kind of right, then the contract of Bey’a (sale)/conveyance can be used as the basis contract of these bonds.

Primary Market

It is permissible to buy and sell Manfaat bonds with increase or discount.

Secondary Market

If the basis contract is Ijarah in Manfaat bonds, it is necessary for the bond buyer to perform continuous service work such as insurance and ancillary services on behalf of the bond buyers, so that the transfer of bonds to higher amount is permissible.

Asset Basis

The asset basis in Manfaat bonds can be in one of the following four categories:
The first type of Manfaat bonds: To get assets interests the bondholder shall wait until the end of the term of the bonds to get all the benefits, such as the benefits from freeways.

The second type of Manfaat bonds: To get assets interests the bondholders do not need to wait until the end of the term of the bonds to get all the expected benefits from the asset, like the interests of hotels.

The third type of Manfaat bonds: the right to use services.

Shares: (if the basis for the issuance of bonds is shares, other rights such as capital gains, voting rights, pre-emptive rights, etc. shall be determined in the contract while it is concluded).
(Note: Since the basis contract in Manfaat bonds is Ijarah, the rules that are related to share-based Ijarah bonds shall be followed).

. The income from the transfer of Manfaat cannot be the basis for the issuance of bonds.
. The transfer of interests to the bondholders shall be formal and transparent.
. The asset subject to the issuance of Ijarah bonds (including physical assets and shares) shall be legally and conventionally capable of being rented.
The Bonds’ Rate of Return

. The originator can compromise with the bondholders in terms of determining and paying the minimum and maximum profit.
. In the first type of Manfaat bonds, the originator's obligation to pay the minimum expected profit in the case of non-realization of the expected profit is valid as a condition in the contract. In the first type of Manfaat bonds, the originator can pay a part of the profits to the bondholders on account. But at the end of the bond period, it is necessary to calculate and pay the amount of the final yield of the bondholders.
If the amount of income exceeds a certain amount, the originator has the right to receive the excess amount as attorney's fees.
. Ensuring the minimum expected profit in the second-type (such as hotels) and the third-type (such as commercial messages) bonds through placing the right to sell as a condition in the contract is permissible and is the basis for the issuance of bonds.
. If the originator is the government, in order to apply incentive policies it can voluntarily pay the difference to the bondholders, if the predictions are not realized and the expected benefit of the bondholders is lower than the minimum of the expected benefit promised.