HDFC to sell Sukuk bonds worth MVR 200 mln

Housing Development Finance Corporation (HDFC) has commenced selling sukuk bonds for the fourth time.

HDFC said the bank will be selling their Islamic bonds at a face value of MVR 1,000 per sukuk to gather MVR 200 million for those seeking to buy, build or renovate homes through HDFC. The bank has opened purchase of their sukuk bonds until September 30, and will be selling 200,000 sukuks in total.

According to the bank, buyers will receive 65 percent of sukus as profit, while the remaining 35 percent will be for the bank. The profit of the bonds will be distributed as dividend for 10 years, and will be disbursed every 6 months through 'Maldives Securities Depository'.

A sukuk is a sharia-compliant bond-like instruments used in Islamic finance which involves a direct asset ownership interest.