A non-convertible sukuk issue that qualifies to be part of additional tier-1 capital (AT-1). It constitutes addition to an existing tier-1 non-convertible sukuk issued by the same institution to finance additional or expanded operations and requirements.
Non-convertibility implies that the sukuk certificates extend no option to the sukuk holders to convert the sukuk into the underlying real assets. Such an option, constituting the right, without the obligation, to convert the sukuk, is embedded in convertible sukuk. The non-convertible sukuk can only be liquidated at the defined maturity date, or at an early liquidation date for one reason or another leading to default on payment of profit.
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