Journal of Islamic Business and Management

Raising Redeemable Capital through Musharakah TFCs: A Case of Quasi Equity for Corporate Financing

Zohra Jabeen, Shafiullah Jan & Romana Bangash

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 Shari‘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. musharakah 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.


Musharakah, Term Finance Certificate, Shari‘ah, Quasi Equity