Summary PMRC will utilize the proceeds of this Sukuk for further development of Shariah Compliant
ISLAMABAD (Dunya News) – Pakistan Mortgage Refinance Company (PMRC) has issued a first of its kind Sukuk of Rs 3.1 billion at 8.25% for the promotion of housing finance in Pakistan.
PMRC and its Partner Financial Institutions (PFIs) have joined hands to strengthen and promote the housing finance market by participating in a privately placed Sukuk of Rs 3.1 Billion. The Sukuk was jointly led by Pak Kuwait Investment Company (PKIC) and the Bank of Punjab (BoP). The investors included HBL (Islamic Banking), Askari Commercial Bank (Islamic Banking), Bank Islami, PKIC, BoP and Karandaaz Pakistan.
Meezan Bank Limited – the largest Islamic and the Best Bank in Pakistan (PBA 2020) structured this unique Sukuk along with PMRC’s Shariah Advisor Mufti Ehsan Waquar and PMRC team. The Sukuk is the first of its kind and is based on Shirkah-tul-‘Aqd.
PMRC will utilize the proceeds of this Sukuk for further development of Shariah Compliant housing/ residential mortgage financing as well as Housing Finance Portfolio (HFP) of eligible Islamic Financial Institutions.
Mudassir H Khan, Managing Director/ CEO PMRC remarked, “I am delighted to say that we have brought innovation in Islamic financing and for the capital markets with this Sukuk. It opens doors and will provide opportunities for Shariah Compliant financing both for consumer as well as the corporate sector. I feel proud that PMRC is becoming an important player in development of affordable housing finance particularly low-income housing.”
Irfan Siddiqi - President and CEO (MEBL) remarked, “Meezan Bank is pleased to partner with PMRC in structuring this new and progressive Sukuk for raising Islamic funds. I am confident that this will greatly contribute towards increasing accessibility and growth in housing finance.”
Ahmad Ali Siddiqui of Meezan Bank remarked, “This Sukuk is based on one of its kind Shariah compliant structure under which the investors and PMRC will enter into Musharakah Agreement to create Musharakah in the Housing Finance Portfolio. Profits of Musharakah business shall be shared between Sukuk Holder and PMRC as per their ratio of investment. This is a unique structure which will play a pivotal role in the housing sector”.
