March 19, 2021: Pakistan Mortgage Refinance Company (PMRC) has issued a first of its kind Sukuk of PKR 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 PKR 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.
PMRC team structured this unique Sukuk along with their advisor Meezan Bank and PMRC’s Shariah Advisor Mufti Ehsan Waquar. 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 consumers as well as the corporate sector. I feel proud that PMRC is becoming an important player in the development of affordable housing finance particularly low-income housing.”
Mr. 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”.
