MHA Private Limited has successfully raised MVR 30 million through a fully subscribed Parallel Istisna Sukuk, marking another encouraging development in the growth of Shariah-compliant financing and capital-market participation in the Maldives.
The five-year Sukuk issuance comprised 30,000 certificates with a face value of MVR 1,000 each and offered investors an expected annual profit rate of approximately 8 percent. Profit distributions will be made on a semi-annual basis, providing participating investors with a structured Shariah-compliant investment opportunity over the duration of the issuance.
The Sukuk has been listed on the Viyana Board of the Maldives Stock Exchange, further strengthening opportunities for both institutional and retail investors to participate in Islamic capital-market instruments. The successful subscription of the full MVR 30 million issuance reflects growing investor interest in alternative financing structures and demonstrates the expanding role of the Maldivian capital market in supporting private-sector development.
Proceeds from the issuance will be used to finance the development of MHA Promenade, a four-storey commercial development planned for Hulhumalé. The project is expected to significantly expand MHA’s existing retail, wholesale and logistics operations while creating a modern commercial destination designed to serve the needs of residents, businesses and families in the rapidly developing urban area.
MHA Promenade will incorporate wholesale and distribution facilities, retail showrooms, storage warehouses and dedicated office spaces, creating an integrated commercial environment under a single development. The project is expected to strengthen the company’s operational capacity by providing improved infrastructure for distribution, warehousing and customer-facing activities while supporting the continued expansion of its business operations.
The development also reflects the increasing commercial importance of Hulhumalé as one of the Maldives’ fastest-growing urban and economic centres. With continued residential expansion, infrastructure development and increasing demand for modern commercial facilities, projects such as MHA Promenade are expected to contribute to the diversification of services available to businesses and communities in the area.
MHA Managing Director Sofwan Ahmed said the company has consistently sought to adapt its services and business offerings in line with changing customer expectations and the evolving needs of the Maldivian population.
“MHA has always sought to remain modern and relevant in its offerings, evolving alongside the changing needs and expectations of our customers. As our population grows and lifestyles change, we see a growing need for spaces that bring families and communities together. MHA Promenade is being developed with this in mind — as a modern, family-oriented destination where people can gather, connect and spend quality time. The successful closure of this Sukuk issuance reflects the confidence investors have placed in this vision, and we are grateful for their strong support,” Sofwan said.
First National Finance Corporation served as Principal Adviser and Lead Arranger for the Sukuk issuance, while CLA Partners LLP acted as Legal Counsel. Dr. Aishath Muneeza served as Shariah Advisor, ensuring that the financing structure complied with the relevant principles of Islamic finance.
First National Chief Executive Officer Hassan Ziyath said the fully subscribed issuance represented an encouraging development for the Maldives’ capital market and demonstrated increasing demand for Shariah-compliant investment opportunities.
“The successful, fully subscribed closure of the MHA Sukuk demonstrates the growing appetite for Shariah-compliant investment opportunities in the Maldivian capital market. The participation of both institutional and retail investors is particularly encouraging and demonstrates the potential for capital-market financing to support the growth of Maldivian businesses and commercially viable projects,” he said.
The successful issuance comes as the Maldives continues to strengthen its financial and investment environment and promote greater participation in domestic capital markets. Expanding access to Shariah-compliant financing instruments provides local companies with additional avenues for raising development capital while offering investors a broader range of investment opportunities aligned with Islamic financial principles.
The financing of MHA Promenade through the capital market also highlights the potential for private-sector projects to mobilise domestic investment for commercially sustainable developments. As the Government continues efforts to encourage private-sector growth, economic diversification and a stronger investment ecosystem, successful corporate issuances are expected to support the development of a deeper and more diversified financial market in the Maldives.
Once developed, MHA Promenade is expected to provide MHA with greater capacity to expand its wholesale, retail, distribution and logistics activities while introducing additional commercial and community-oriented spaces in Hulhumalé. The project represents another addition to the expanding commercial landscape of the city and reflects growing private-sector confidence in the long-term development of the Maldives’ urban economy.
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