IntroductionSukuk is nomarlly known as an Islamic or Sharia obey ‘Bond’ simultaneously in actual fact.It is an asset-backed instrument and tradable shari’ah compatible trust certificates. In its simplest form Sukuk is a certificate evidencing ownership of an asset .The Sukuk structures rely on the creation of a Special Purpose Vehicle (SPV). Sukuk whose singular is sakk whose is used to provide alternative funding for financing projects through asset securitization.A recent reform that allows Islamic Finance to participate in yet another area of conventional finance. In Islamic, fixed income and called as interest (riba) bearing bonds are not permissible.It is principles prohibit the charging, or paying of interest.Financial assets that obey with the Islamic law can be classified in the secondary markets. Based upon existing Islamic Financial transactions, sukuk offer Islamic financial institutions and investors another way to raise capital through profit sharing without a prime rate, but achieving the same result as conventional finance. Benefits of sukuk is among financing large enterprises,an ideal means for investors seeking to deploy streams of capital, manage liquidity for banks and Islamic financial institutions and equitable distribution of wealth.Examples of sukuk issuance by Japanese companies On the other hand, global financial institutions like Nomura Holdings and BTMU are motivated to enter this market to (1) diversify their funding sources by region and currency, (2) raise funds aimed at providing sharia-compliant financial services to the local market, (3)improve their image and name recognition in the Islamic world, (4) gain access to investors in Southeast Asia and the Middle East, (5) assume the role of an arranger for future Japanese sukuk issuances (a longer-term objective of accumulating expertise and helping other Japanese companies obtain funding through sukuk), and (6) strengthen their relationships with governments seeking to develop Islamic financial markets and with major market players.