March 28, 2022: The SECP’s Registrar Modaraba, with approval of the Religious Board, authorized the floatation of Burj Clean Energy Modaraba (an Islamic Financial Institution) managed by Burj Modaraba Management Company (Private) Limited, under the Modaraba Ordinance, 1980, a press release said today
The floatation of the new Modaraba will facilitate the growth of Shariah-compliant financial products in the financial services market. After due process, the Burj Modaraba will be listed at PSX within a period of 12 months, with the public offering of its thirty million Modaraba certificates of PKR10 each (30% of the total paid-up fund) out of the total paid-up fund of PKR1 billion.
The Modaraba is intending to engage in the business of generation and supplying renewable energy and renting commissioned renewable energy equipment/plants after the completion of the public offering.
The sponsors of the Modaraba are already engaged in preparatory and development activities such as origination of renewable energy projects, execution of binding contracts with the customers, engineering design and appointment of engineering, procurement, construction and commissioning contractors.
Notably, the Burj Energy International Management Limited – a UAE based sponsor company of the Modaraba, in collaboration with US International Development Finance Corporation (DFC), has successfully developed and commissioned a 50 MW Wind Power Plant in Jhimpir, District Thatta, Sindh, Pakistan, at a total cost of USD 126 million. It is believed to be one of the most efficient and successful wind power projects in the Jhimpir wind corridor.
The floatation of a new Modaraba in the area of renewable energy is expected to encourage other players to raise funding through the capital market and further develop Islamic financial institutions in the country.