IUM announces sale of MVR 60 M Sukuk

Islamic University of Maldives (IUM) has announced the sale of MVR 60 million in Sukuks to raise the required funds to establish the university’s “Sanabil” building.

At a ceremony held on June 03, 2024 the university, officiated by Parliament Speaker Abdul Raheem Abdulla, announced it.

IUM has announced the sale of 60 Sukuks with a face value of MVR 1 million each.

Interested investors can subscribe to the Sukuks from June 23 onwards, via the Viyana Portal of the Maldives Stock Exchange (MSE).

A Sukuk is a financial certificate, part of Islamic finance, and similar to conventional bond. It is structured to comply with Shariah, or the Islamic jurisprudence, and combines debt and equity features.

In Sukuk, an investor does not own a debt obligation but a piece of the asset linked to the investment, out of which they acquire profit from the proceedings of the asset sale.

IUM’s planned ‘Sanabil’ is an eight-level structure with state-of-the-art and contemporary equipment, including an auditorium, hall, laboratories, classrooms, and administrative block.

The building is part of IUM’s strategies to generate a profitable revenue by renting the floors for commercial use to interested parties.

The project’s Shariah advisor Azmeen Rasheed highlighted the benefits of seeking a Shariah-compliant approach to raise funds for the development.

All necessary permits to issue the Sukuks were provided by the Capital Market Development Authority (CMDA) and the Maldives Stock Exchange (MSE).

Watercress Capital Private Limited is the lead manager of the project.

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