An acronym for Islamic capital protected note; an Islamic capital protected product/ instrument that provides its holder (the investor) with capital protection as to the initial invested amount (principal amount) over the its term and up till maturity date. It differs from its conventional counterpart (capital protected note) in the sense that its performance is linked to shari’ah compliant source of revenue such as a basket of shari’ah-screened equities (stocks), commodities, or a combination of assets, etc. For example, such a note may be linked to Islamic bank stocks listed on certain stock exchanges, and meeting the screening criteria.
By nature, and as a note, an Islamic capital protected note is a mid-term instrument (e.g., a three-year note).
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