Islamic University to sell Sukuk of MVR 60 million

The Islamic University of Maldives (IUM) has announced that it will be selling Sukuk of MVR 60 million in order to raise funds to construct the 'Sanaabil' building in Hulhumale' Phase 1.

The announcement was made a special ceremony held at the university yesterday. Speaker of Parliament Abdul Raheem Abdulla was the Guest of Honour at the event.

Yesterday, 60 sukuks with a face value of MVR 1 million was issued.

The University said that interested parties can subscribe to Sukuk through the Maldives Stock Exchange's Viyana Portal from June 23 onwards.

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.

The IUM is using this strategy to raise funds to construct their 'Sanaabil' structure. This will be an eight storey building equipped with modern facilities. It is planned to have an auditorium, hall, laboratories, classrooms and office spaces. The university's strategic plan is to lease these to the public and generate sustainable income.

The Project's Shariah Advisor Azmeen Rasheed stated that the Capital Market Development Authority (CMDA) and Maldives Stock Exchange have granted all necessary permissions to list the sukuks issued for the project.

The Lead Manager of the project is the Maldivian company Watercress Capital Pvt Ltd.

The University stated that even at present, many major companies in the Maldives have expressed interest in investing in these sukuks.

Deputy Vice Chancellor of IUM Ahmed Ameen Mohamed stated that conducting a project such as this through Islamic Financing is an important step taken to promote Islamic Financing in the Maldives.

IUM is the only higher education establishment that offers Islamic Finance studies up to Masters Degree level in the Maldives.