KARACHI: Pakistan Mortgage Refinance Company (PMRC) has issued the first of its kind Musharakah based Sukuk of Rs 3.1 billion at 8.25 percent for the promotion of housing finance in the country.

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 said that he is delighted to say that they 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 consumers as well as the corporate sector, he said.

Irfan Siddiqi, President and CEO (MEBL), said that Meezan Bank is pleased to partner with PMRC in structuring this new and progressive Sukuk for raising Islamic funds. He was confident that this will greatly contribute towards increasing accessibility and growth in housing finance.

Ahmad Ali Siddiqui of Meezan Bank said 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 in Pakistan,” he added.