IUM sells MVR 60 million sukuk

The Islamic University of Maldives (IUM) has sold a MVR 60 million sukuk for a construction project under the Sukuk exception model permitted by Islamic Sharia.

The sukuk was sold to raise funds for the Sanabil project; a tertiary education centre in Hulhumale.

IUM announced the sale of the securities in the capital market on June 4.

IUM Deputy Vice-Chancellor, Admin and Finance Ahmed Ameen Mohamed told Atoll Times on Monday that this is the first sukuk exemption sold to raise funds for a construction project in Maldives.

He said the total amount of the sukuk was raised during the subscription period.

The face value of a sukuk is MVR 1 million. At least five sukuk are required to be purchased. Ameen said the sukuk was successful because only one person subscribed the total amount.

"Only one party subscribed for the total amount of the sukuk. We will pay the money in instalments over a period of 10 years," he said.

Project Sanabil is a project aimed at building the first tertiary education centre in the country in Hulhumale on land purchased by IUM near Hulhumale Central Park. According to IUM, the facility will be developed to the latest standards to provide opportunities for higher education to Maldivian students.

According to Ameen, building permits and construction work have already started.