Sell and Buy Back Agreement

​The Sell and Buy Back Agreement (SBBA) is an Islamic financial instrument introduced for the purpose of enhancing liquidity in the Islamic Interbank Money Market (IIMM).  

SBBA transactions consist of the following: (i) Commitment by the first party to sell Islamic securities and for the second party to purchase the Islamic securities. The parties will then subsequently promise (via single or double Wa’d) to perform the reverse on a pre-agreed future date. (ii) Results in transfer of ownership of the Islamic securities (against a cash payment).