The Islamic University of Maldives (IUM) has initiated a sukuk issuance to secure funding for the ‘Sanaabil’ project, aimed at constructing a cutting-edge building in Hulhumalé. A ceremony was held at the university to mark the official launch of the sukuk issuance, with the Speaker of Parliament, Abdul Raheem Abdulla, attending as the guest of honour.

During the event, IUM’s Shariah Advisor, Azmeen Rasheed, highlighted the advantages of utilising the Islamic finance model to raise funds for the proposed building through the capital market. All necessary permits to issue the sukuk have been obtained from the Capital Market Development Authority (CMDA) and the Maldives Stock Exchange (MSE), according to IUM.

Under the Sanaabil project, IUM has released 60 sukuks, each with a face value of MVR 1 million. Prospective investors keen on participating in the sukuk can subscribe through MCE’s Viyana Portal starting from 23 June, said IUM. Watercress Capital Pvt. Ltd., an independent asset management company, is the lead manager for this project.

Numerous local entities, including prominent companies, have expressed early interest in investing in the Sukuks, according to the university. IUM is the sole higher education institution in the Maldives, offering tertiary education in Islamic finance up to the master’s degree level.

The proposed Sanaabil building will comprise eight floors and feature state-of-the-art amenities including an auditorium, laboratories, classrooms, and office spaces, according to IUM. The university also intends to generate revenue by leasing office space to external parties.