MHA has successfully raised MVR 30 million through a fully subscribed five-year Parallel Istisna Sukuk, strengthening the company’s financing capacity as it prepares to develop MHA Promenade, a four-storey commercial complex in Hulhumalé.
First National Finance Corporation served as the Principal Adviser and Lead Arranger for the Sukuk issuance, which attracted participation from both institutional and retail investors. The successful subscription reflects continued interest in Shariah-compliant financing instruments in the Maldives and demonstrates the growing role of the domestic capital market in supporting private-sector development.
The Sukuk comprises 30,000 certificates with a face value of MVR 1,000 each and carries an expected annual profit rate of approximately eight percent. Profit distributions will be made on a semi-annual basis, providing investors with a structured Shariah-compliant investment opportunity over the five-year tenure of the instrument.
The Sukuk has also been listed on the Viyana Board of the Maldives Stock Exchange, expanding access to Islamic investment products within the country’s regulated capital market. The issuance represents another positive development in efforts to broaden financing alternatives available to Maldivian companies while providing investors with opportunities to participate in commercially viable domestic projects.
MHA said the MVR 30 million raised through the issuance will be directed towards the development of MHA Promenade in Hulhumalé. Designed as a four-storey commercial development, the project is expected to significantly strengthen the company’s retail, wholesale, distribution and logistics capabilities while creating a modern commercial environment for customers, businesses and families.
The planned development will incorporate wholesale and distribution facilities, dedicated showrooms, storage warehouses and office spaces, allowing several components of MHA’s commercial operations to be brought together within a purpose-built facility. The integrated approach is expected to improve operational efficiency while enhancing the company’s ability to respond to growing demand across its business activities.
Located in Hulhumalé, one of the Maldives’ fastest-developing urban areas, MHA Promenade is also being positioned as more than a conventional commercial facility. The company intends to create a modern, family-oriented destination where visitors can gather, connect and spend quality time while accessing a range of commercial services and facilities within a contemporary setting.
The development of the Promenade is expected to complement Hulhumalé’s continued urban and commercial expansion, which has created growing demand for modern retail, warehousing, distribution and office infrastructure. By combining commercial, logistical and customer-focused functions within a single development, the project is expected to strengthen MHA’s presence in the domestic market and support the company’s longer-term growth strategy.
MHA Managing Director Sofwan Ahmed said the company has continued to develop and diversify its offerings in response to changing customer needs and expectations. He said MHA Promenade is being designed as a modern and welcoming family-oriented destination that will provide people with an environment in which they can gather, connect and spend quality time.
Ahmed said the successful completion of the fundraising demonstrated the confidence investors have placed in the company’s plans and the commercial vision behind the Promenade development.
“The successful closure of this Sukuk issuance reflects the confidence investors have placed in this vision, and we are grateful for their strong support,” he said.
First National Chief Executive Officer Hassan Ziyath said the full subscription of the Sukuk demonstrated increasing demand for Shariah-compliant investment opportunities within the Maldivian capital market.
He noted that participation from both institutional and retail investors further demonstrated the potential of capital-market financing to support the expansion of Maldivian businesses and provide funding for commercially sustainable projects.
The transaction also contributes positively to the continued development of the Maldives’ financial sector by demonstrating how locally structured capital-market instruments can mobilise domestic investment for productive economic activity. The growing availability of Shariah-compliant financing solutions is expected to provide businesses with greater flexibility in raising capital while giving investors a wider range of investment opportunities within the country.
The expansion of financing options through the Maldives Stock Exchange also complements broader national efforts to strengthen private-sector participation, encourage domestic investment and diversify sources of business financing. Successful issuances of this nature can contribute to building investor confidence and supporting the development of a more active and diversified capital market.
CLA Partners LLP acted as Legal Counsel for the Sukuk issuance, while Dr. Aishath Muneeza served as Shariah Advisor, providing Shariah guidance for the structure of the financing.
With the successful MVR 30 million fundraising completed, MHA is now positioned to advance the development of MHA Promenade as a major addition to its commercial operations in Hulhumalé. The project is expected to provide the company with expanded infrastructure for retail, wholesale, logistics, storage and administrative activities while establishing a modern destination designed to serve the evolving needs of customers and businesses in the Greater Malé region.
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