Sell & Buy Back Agreement                         

This is an Islamic money market transaction between the seller (owner) and buyer (investor) of an Islamic money market instrument based on the contract of Murabahah, where the seller sells the instrument to the buyer for cash to fund his deficit position and the buyer buys the instrument from the seller for investment purposes.

At the same time, the buyer promises to sell back the instrument to the seller who agrees to buy back the instrument at a specified price on a specified future date agreed by both parties. The difference between the buying and selling price represent the yield to the investors. It can also be structured based on Bai Bithaman Ajil. The Sell & Buy Back Agreement may be traded in the secondary market based on Bai Al Dayn