The SECP has issued formal authorization to Habib Metropolitan Modaraba Management Company (Private) Limited (HMMMCPL), a wholly owned subsidiary company of Habib Metropolitan Bank Limited (HMBL), to float another modaraba of Rs. 300 million under the name of “Habib Metro Modaraba.”
HMMMCPL is currently managing First Habib Modaraba, which is listed on the stock exchange. The new modaraba will be a financial service modaraba, focusing on providing car-financing solutions to individuals and corporate customers based on residual value car financing model.
It will also provide solar power solutions to its customers based on ijarah besides providing finances for generators, construction equipment, commercial and agricultural equipment etc.
The initial paid-up fund of Habib Metro Modaraba will be Rs 300 million, out of which modaraba certificates of Rs 90 million will be subscribed by HMMMCPL, HMBL and associates while remaining certificates worth Rs 210 million shall be offered to the public. The certificates of the modaraba will be listed on the stock exchange.
Earlier, in terms of Section 10 of the Modaraba Companies and Modaraba (Flotation and Control) Ordinance, 1980, the Religious Board for Modarabas in its 46th meeting held at the SECP head office on February 21, 2017, had cleared and certified that the proposed business of the modaraba specified in its prospectus is not contrary to the injunctions of Islam.
It is expected that addition of Habib Metro Modaraba to the modaraba sector will promote the business in conformity with the Islamic injunctions and attract the public to invest in Islamic financial institutions.