Housing Development Financial Corporation (HDFC) has decided to sell Islamic bonds (sukuk) of MVR 150 million to provide financial aid in accordance with Islamic laws for home construction and purchase.
According to a company official, the Islamic bonds will be sold to acquire finance for Amna, an Islamic window of HDFC which offers Islamic home financing facilities to customers.
HDFC is to sell Islamic bonds at a rate of MVR 1,000 per bond. Profits from Islamic bonds bought for a period of 10 years will be paid biannually, added the company.
This marks the second time for HDFC to sell Islamic bonds. The event was officially inaugurated at the Financial Expo which was held this weekend, during which HDFC also released its prospectus. The corporation will sell the bonds from coming August 7 to September 7.
HDFC’s official stated that there is no limit to the amount of bonds an individual entity may purchase.
“They will receive profits up to 65 percent based on their investment. More profit for those that invest more,” explained the official.
HDFC had also sold MVR 22,566,000 of Islamic bonds last year at a rate of MVR 500 per bond.