Muqarada(redirected from Muqaradat)
In Islamic finance, a way to structure a bond for which bondholders are entitled to cash flow from the project that the bond intends to finance. Unlike conventional bonds, however, muqarada "coupons" are not guaranteed and the bondholder takes a risk that the project will not generate cash flow. Holders are only entitled to cash flow as it becomes available. See also: Sukuk.