Mudaraba bond is a financial document of a Mudaraba contract. Each mudaraba bond shows how much capital the owner of the mudaraba leaves through his lawyer (intermediary) at the disposal of the agent (commercial company) and in what proportion they share the profit from the business activity. Therefore, the bond holder's relationship with the issuer is the relationship of the agent and the capital owner's relationship with the agent of the Mudaraba contract, and the bond holders' relationship with each other is the relationship of the capital owners in the Mudaraba contract.
In the mudaraba contract, the owner of the capital can be several people who jointly provide the required capital for the mudaraba. In the secondary market, when the holder of mudaraba bonds transfers his bonds to another, he actually sells his share of the assets (capital) of the commercial company to another.

Type of Mudaraba Bonds:
Mudaraba bonds can be issued through various methods:

1- Special Mudaraba Bonds
Sometimes a commercial company (originator) has the necessary knowledge and experience; furthermore, it has a license to buy and sell certain goods such as agricultural goods (such as saffron, pistachio, cumin) or industrial goods such as decorative stones, carpets, etc. or other goods, but it faces problems for financing. To solve this problem and to provide the required capital, the company requests the issuance of Mudaraba bonds for a specific business activity by referring to trustee and establishing an intermediary company. After studying the prospectus and obtaining the necessary permits, the intermediary issues mudaraba bonds by handing over the bonds and equipping the necessary capital, and puts them at the disposal of the originator to divide the obtained profit among the bond holders at the end. The bond holders bonds can keep the bonds and use the commercial profit, because they can sell their bonds in the secondary market.

2- Public Mudaraba Bonds with Maturity
In this type of mudaraba, the commercial company does not intend to buy and sell a specific product, but it is a company that is specialized in the field of buying and selling a specific product such as carpet, sofa, rice or other. And the business activity of this company is not limited to a certain time, it buys on one side and sells on the other side.
In order to finance, the company in the position of the originator, by referring to the trustee and establishing an intermediary company, it requests the issuance of public mudaraba bonds with a specific maturity (for example, one year, two years, or five years) with specific rate of return payment periods (for example, quarterly). After studying the prospectus and obtaining the necessary permits, the intermediary issues mudaraba bonds and makes them available to the applicants, then it gives the obtained funds as mudaraba to the originator, then the originator engages in commercial activities with that capital and returns the profit at the end of each financial period. From the fraction of the agent's share, the originator distributes it among the bond holders. At the end of the maturity period, in addition to the profit of the last financial period, the principal capital of the bond holders is returned or it is converted into public mudaraba bonds with a new maturity.

3- Public Mudaraba Bonds without Maturity

In this type of Mudaraba, a bank like Export Development Bank of Iran issues public mudaraba bonds without maturity with certain rate of return payment periods (quarterly, six months or yearly) and the obtained funds are available to the originator(exporters and importers) to allow them to engage in commercial activities. At the end of each financial period, every commercial company pays the profit from the activity after discounting the operating share to the bank to distribute among the bond holders. This situation continues until the liquidation of the commercial company requesting the capital, and in case of liquidation, the assets of the company are divided among bond holders according to the regulations.