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HDFC Sukuk, First of its kind in Maldives

Housing Development Finance Corporation (HDFC) announced the issuance of its second Sukuk Mudarabah to raise MVR150 million at the Financial Expo organized by the Maldives Monetary Authority in July, 2017.

Each Certificate is priced at MVR1,000; Profits to be paid biannually. The profit-sharing ratio is 65:35. The tenor of the Sukuk is 10 years. Proceeds of the Sukuk will be used to provide Islamic financing facilities via HDFC Amna.

Issuer:

Housing Development Finance Corporation Plc.

Issue Price:

MVR 1000.00 per Sukuk

Total Issue:

MVR. 150,000,000.00 (One Hundred and Fifty Million Rufiyaa) (150,000) [One Hundred and Fifty Thousand] Sukuk)

Issue Date of the Prospectus

6th July 2017

Subscription Opening Date (Subject to Change)

06th August 2017

Subscription Closing Date ( Subject to Change)

07th September 2017

The Project:

To fund shari'ah compliant mortgage housing finance operations under HDFC Amna

Tenure / Maturity Date:

Ten (10) years from the allotment date

Profit:

65% of the gross profit distributed to Sukuk holders

Profit Payment Dates:

Every six months after the date of allotment, until the Maturity Date

In the inauguration of the Issue, the Managing Director stated that the reason for the issuance of a Sukuk facility is due to the ever growing demand for Islamic Finance Products in the market. The subscription is to remain open from the 7th August 2017 until 7th September 2017. The Sukuk will be listed on the Maldives Stock Exchange.
HDFC Amna is the Islamic Window of HDFC created by the Board of Directors to offer Islamic Home Financing Facilities to customers in an affordable manner.

It is being operated as a separate department of HDFC under the existing license of the HDFC and is neither a separate company nor a subsidiary. HDFC Amna was launched during the second quarter of 2012.

This is the second Corporate Sukuk issued in the country. HDFC pioneered the way in issuing the first Corporate Sukuk in 2013.

A total of 467 people participated and a total of 45,132 certificates were sold during the first issue. Profit is being distributed bi-annually in which Sukuk holders receive 65% of the gross profit.