M.H.A. Private Limited, a prominent player in the Maldives’ fast-moving consumer goods (FMCG) sector, has launched a MVR 30 million Parallel Istisna’ sukuk to finance the development of its latest retail and logistics hub, the M.H.A. Promenade in Hulhumalé. This major financing initiative reflects growing investor confidence in Shariah-compliant instruments within the Maldivian capital markets and reinforces Hulhumalé’s appeal as an emerging business and tourism hub.
The sukuk, structured in accordance with Islamic finance principles, is a five-year amortised issuance listed on the Viyana Board of the Maldives Stock Exchange. It features a competitive profit rate of approximately 8% per annum, with bi-annual profit share and capital repayments. A total of 30,000 sukuk units are being offered at a face value of MVR 1,000 each, with a minimum subscription requirement of MVR 10,000, making the investment accessible to a wide range of institutional and retail investors.
Proceeds from the issuance will be exclusively dedicated to the development of the M.H.A. Promenade, a commercial real estate project designed to strengthen M.H.A.’s retail and distribution capabilities in Hulhumalé. The project includes the construction of a comprehensive logistics and retail complex featuring wholesale and distribution centres, showrooms, storage facilities, and office spaces. The integrated infrastructure aims to support the company’s expanding operations, improve supply chain efficiency, and cater to the growing commercial demand in Hulhumalé, which is fast evolving into a key urban centre in the Maldives.
The sukuk is structured under a Parallel Istisna’ model, a contract widely used in Islamic project financing. Under this arrangement, M.H.A. acts as both issuer and trustee. Funds raised through the sukuk will be deployed for project construction through a subcontracted developer. The sukuk is secured by assigned receivables generated from the M.H.A. Promenade project, ensuring a dedicated and traceable revenue stream to facilitate periodic profit distributions and principal repayments over the investment term.
Speaking on the launch, Mr. Sofwan Ahmed from M.H.A. Private Limited expressed confidence in the project and the sukuk’s value proposition:
“We are proud to introduce our first sukuk offering to support the development of the M.H.A. Promenade project. This initiative is central to our long-term growth strategy and allows us to expand our retail and logistics infrastructure in Hulhumalé. We are also pleased to provide investors with a Shariah-compliant investment opportunity with the potential for stable returns.”
First National Finance Corporation, which served as the Principal Adviser to the issuance, underscored the importance of this offering in promoting Islamic finance in the country. Mr. Hassan Ziyath of the corporation stated:
“The launch of this sukuk marks an important step in introducing structured and ethical financing options to the Maldivian market. It demonstrates how Islamic financial instruments can be effectively used to fund commercial projects that generate economic activity while offering investors security and compliance with Shariah principles.”
Other key stakeholders in the issuance include CLA Partners LLP, who served as Legal Counsel, and Dr. Aishath Muneeza, one of the region’s leading Islamic finance scholars, who acted as the Shariah Advisor. The issuance has been officially approved by the Capital Market Development Authority (CMDA) and adheres fully to the applicable laws and Islamic financial guidelines.
As the Maldives continues to diversify its investment landscape and urban development accelerates in Hulhumalé, the M.H.A. Promenade project presents an attractive case for both domestic and international investors seeking Shariah-compliant and socially responsible investment options. The sukuk not only supports the country’s growing capital market ecosystem but also contributes to the enhancement of logistics and retail infrastructure crucial for tourism and commercial development in the region.
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