MHA, a leading wholesale and retail business in Maldives, has raised MVR30 million through a sukuk to finance the construction of MHA Promenade in Hulhumale'.

The sukuk is structured as a parallel Istisna sukuk and has a five-year term with an annual profit rate of 8 percent. Investors will receive biannual returns, First National, the lead arranger and manager of the sukuk, said.

Both retail and institutional investors subscribed to the sukuk. First National said the strong investor interest reflected confidence in MHA and Sharia-compliant investment products available in the Maldivian capital market.

The issue comprises 30,000 sukuk certificates with a face value of MVR1,000 each.

The proceeds will be used to develop MHA Promenade, a commercial real estate project in Hulhumale' aimed at expanding the company's retail and logistics operations.

The development will include wholesale and distribution centres, showrooms, storage facilities and office space. MHA said the project is being developed to accommodate its expanding operations.

MHA Managing Director Sofwan Ahmed said the company had always sought to provide quality services to its customers.

“With changes in population and lifestyles, families, friends and communities need pleasant places to spend time,” he said.

“MHA Promenade is being developed with this idea, as a contemporary place that emphasizes families, a destination where people can gather, bond and spend some time together.

The successful completion of this sukuk issue shows investor confidence in this company,” Sofwan said.