The Islamic University of Maldives (IUM) sold Sukuk of MVR 60 million in order to raise funds to construct the 'Sanaabil' building in Hulhumale' Phase 1.
Islamic University of Maldives (IUM) has sold a MVR 60 million Sukuk order to raise funds to construct the 'Sanaabil' building in Hulhumale' Phase 1.
This is the first time that sukuks were issued to raise funds for a construction project in the Maldives.
IUM issued 60 sukuks with a face value of MVR 1 million in June to fund the construction of their 'Sanaabil' structure.
'Sanaabil' will be an eight-storey building equipped with modern facilities, including an auditorium, hall, laboratories, classrooms, and office spaces. The university's strategic plan involves leasing these spaces to the public to generate a sustainable income.
IUM said that it had received the required amount of funding during the subscription period for the sukuks.
"This is not only an investment in tertiary education and Islamic finance in the Maldives. This investment will also benefit the future of the youth and contribute to the development of the entire society," IUM said thanking sukuk investors.
A sukuk is a sharia-compliant investment product similar used in Islamic Finance which is similar to conventional bonds. Every sukuk in its structure has an asset that generates income or profit behind it. As such, sukuk investors receive a portion of the earnings generated by the associated asset.
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