MHA successfully closes MVR 30M Sukuk

MHA Private Limited has successfully closed its MVR 30 million Sukuk to finance the development of “MHA Promenade” in Hulhumalé.

Structured under a Parallel Istisna’ arrangement, the five-year Sukuk carries a profit rate of 8 perent per annum, with profit distributions to investors to be made on a semi-annual basis. The issuance comprises 30,000 Sukuk certificates, each with a nominal value of MVR 1,000.

The Sukuk was subscribed to by both retail and institutional investors. According to MHA, the strong subscription reflects growing investor confidence in the company’s strategic direction, as well as increasing demand for Shari’ah-compliant investment instruments in the Maldivian capital market.

The proceeds from the issuance will be utilized to finance the development of MHA Promenade, a commercial real estate project intended to expand MHA’s retail and logistics operations in Hulhumalé. The development will comprise a comprehensive commercial complex featuring wholesale and distribution facilities, showroom outlets, storage facilities, and modern office spaces designed to accommodate the company’s expanding operational requirements.

Following the successful completion of the Sukuk issuance, MHA Managing Director Sofwan Ahmed said the company remains committed to delivering high-quality services that meet the evolving needs of its customers.

" As our population grows and lifestyles change, we see a growing need for spaces that bring families and communities together. MHA Promenade is being developed with this in mind — as a modern, family-oriented destination where people can gather, connect and spend quality time," Sofwan said.

He added that the successful closure of the Sukuk issuance demonstrates the trust and confidence investors have placed in the company.

Hassan Ziyath, Chief Executive Officer of First National, said the full subscription and successful completion of the MHA Sukuk represent a significant milestone, underscoring the growing demand for Shariah-compliant investment instruments. He added that the participation of both retail and institutional investors further demonstrates the continued development and deepening of the Maldivian capital market.