A government is funding a new offshore wind farm and wishes to attract Islamic finance investors. They decide to issue 'Green Sukuk' rather than conventional bonds.

Which of the following statements represents a fundamental difference between Sukuk and conventional bonds?

Sukuk guarantees a fixed rate of interest return, whereas conventional bonds offer variable returns.

Sukuk represents partial ownership in an underlying tangible asset, whereas conventional bonds represent a debt obligation.

Sukuk can only be issued by sovereign governments, whereas conventional bonds can be issued by corporations.

Sukuk holders are immune to the operational risks of the underlying asset, unlike conventional bondholders.