MHA Private Limited has announced the sale of a MVR 30 million sukuk to fund a commercial real estate project in Hulhumalé.

The sukuk, issued for MHA’s Promenade Project, is a "Parallel Istisna" structure based on Islamic financing principles. Sukuks are investment products similar to conventional bonds but structured in a Sharia-compliant manner, with income generated from an underlying asset and profits distributed to investors.

Investors in this sukuk will receive an 8% return, paid biannually, over a five-year term. The sukuk is listed on the Maldives Stock Exchange’s Viyana platform.

Each sukuk unit is priced at MVR 1,000, and the total issue consists of 30,000 units. The minimum investment is MVR 10,000.

Funds raised through the sukuk will be used to develop a commercial complex featuring retail and logistics-related infrastructure. This includes a wholesale and distribution center, showrooms, storage facilities, and office space.

First National Finance Corporation is the principal advisor for the sukuk. Legal counsel is provided by CLA Partners, and Dr. Aishath Muneeza serves as the Sharia advisor.

MHA’s Managing Director, Sofwan Ahmed, said the launch of their first sukuk marks a significant milestone and that Islamic financing will support the company’s expansion plans.

First National’s CEO, Hassan Ziyath, noted that the project is expected to boost economic activity in the Maldives. The company has previously assisted Medtech and Eyecare in similar sukuk issuances.