Asset based vs asset backed sukuk

Asset backed is where the money is invested in a portfolio of assets that are earning money. The earnings are distributed to the investors (the sukuk holders), and eventual repayment is at whatever the then market value of the assets is.
So….the earnings depend directly on the earnings from the assets.

With asset based, the money is used to purchase an asset which is then leased back to whoever it was bought from. The rental income is distributed to the investors, and the repayment is usually at a pre-agreed price.
So……although the earnings do effectively derive from the asset, they come in the form of lease payments from the lessor rather than actually from the asset.

In both asset based and asset backed sukuk, the SPV is simply the company that makes the arrangements, issues the certificates, and distributes the money to the sukuk holders.