This Sukuk is based on the Ijarah (sale and lease back) concept, a structure that is widely used in the Middle East. The inaugural issuance took place on 16 February 2006 with an issue size of RM400 million. A special purpose vehicle, BNM Sukuk Berhad has been established to issue the Sukuk Ijarah.
The proceeds from the issuance will be used to purchase the assets of BNM. The assets will then be leased to BNM for rental payment consideration, which is distributed to investors as a return on a semi-annual basis. Upon maturity of the Sukuk Ijarah, which will coincide with the end of the lease tenure, BNM Sukuk Berhad will then sell the assets back to BNM at a pre-determined price. BNM issues this instrument on a regular basis, with issues ranging from RM100 million to RM200 million.