HDFC to sell Islamic shares worth MVR 50 million

Amna, the Islamic wing of the Housing Development Finance Corporation (HDFC), has decided to sell Islamic shares (sukuk) worth MVR 50 million.

Speaking at a press conference today, Deputy General Manager of HDFC Ibrahim Didi said that the decision to sell Islamic shares worth MVR 50 million was finalised today. He said that the Capital Market Development Authority (CMDA) had been requested for permission in this regard.

He said that the face value of every sukuk is MVR 500 and the shares will be sold from 1 Ramadan until the end of Ramadan.

“We will start in Ramadan and such that everyone can participate. People will have the opportunity to buy from 1 Ramadan until the end of Ramadan. Each sukuk is valued at MVR 500. One person can by as many as he wants,” he said.

He said that the returns on the funds invested in these shares would be realised seven years later, and that the funds will be invested as per the rules of Islamic finance.

Chief Finance Officer of HDFC Ali Shareef said that the company had also decided to introduce a new product, which would allow the government to carry out the social housing scheme via HDFC.

Chairman of HDFC Sharia Committee Dr Zakariyya Moosa said that the committee’s efforts are focused on ensuring that the services of HDFC Amna follow the principles of Islamic sharia and Islam.

HDFC said that under the housing project, the company had carried out projects worth MVR 33 million in order to provide flats to 24 people.