ISLAMABAD: Securities And Exchange Commission Of Pakistan (SECP) on Monday authorised floatation of Burj Clean Energy Modaraba to facilitate growth of Shariah compliant financial products in financial services market.
The decision was taken after approval of the religious board, SECP said. Burj Clean Energy Modaraba is an Islamic financial institution that is managed by Burj Modaraba Management Company (Private) Limited.
After due process, Burj Modaraba would be listed at Pakistan Stock Exchange within a period of 12 months, with public offering of its thirty million modaraba certificates of Rs10 each (30 percent of the total paid up fund) out of the total paid up fund of Rs1 billion, it said.
The modaraba aims to engage in business of generation and supplying renewable energy, and renting of commissioned renewable energy equipment/plants after completion of public offering.
The announcement said the sponsors of the modaraba were already engaged in preparatory and development activities such as origination of renewable energy projects, execution of binding contracts with the customers, engineering design and appointment of engineering, procurement, construction and commissioning contractors.
Notably, Burj Energy International Management Limited – a UAE based sponsor company of the Modaraba, in collaboration with US International Development Finance Corporation (DFC), commissioned 50 MW wind power plant in Jhimpir, District Thatta, at a total cost of $126 million.
The initiative is expected to encourage other players to raise funding through capital market and further develop Islamic financial institutions in the country.
Modaraba is one of the prime modes of Islamic Financial System. In Pakistan the process of Islamisation of the economy was initiated in 1980 when the then government introduced the concept of modaraba for Islamisation of the economy in the banking and corporate sector by promulgating the Modaraba Companies and Modarabus Rules 1981.