The Pakistan Mortgage Refinance Company (PMRC) has issued a first of its kind Sukuk of Rs. 3.1 billion at 8.25 percent, and said that it would utilize the proceeds for the development of more Shariah-compliant housing and residential mortgage financing products, as well as the Housing Finance Portfolio (HFP) of eligible Islamic Financial Institutions.
The Sukuk is aimed at the promotion of housing finance in the country. A statement issued by the PMRC announced that the “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 the Pakistan Kuwait Investment Company (PKIC) and the Bank of Punjab (BoP).
The investors include the Islamic banking wings of HBL, Askari Commercial Bank, Bank Islami, the PKIC, the Bank of Punjab, and Karandaaz Pakistan.
The Sukuk has been structured by the Meezan Bank along with the PMRC’s Shariah Advisor, Mufti Ehsan Waquar, and the PMRC team.
The Managing Director and CEO of the PMRC, Mudassir H. Khan, said that his Sukuk would provide opportunities for Shariah-compliant financing both for consumers and the corporate sector.
“I feel proud that the PMRC is becoming an important player in the development of affordable housing finance particularly low-income housing,” he said.
The President and CEO of Meezan Bank, Irfan Siddiqi, said that he was confident that this would greatly contribute towards increasing accessibility and growth in housing finance.