The Securities & Exchange Commission of Pakistan’s (SECP) Registrar Modaraba has authorized the floatation of Burj Clean Energy Modaraba (an Islamic Financial Institution), managed by Burj Modaraba Management Company (Private) Limited, under the Modaraba Ordinance, 1980.
The authorization was given with the approval of the Religious Board, and the floatation of the new Modaraba will facilitate the growth of Shariah-compliant financial products in the financial services market. After due process, the Burj Modaraba will be listed on the Pakistan Stock Exchange (PSX) within 12 months, with the public offering of its thirty million Modaraba certificates of Rs. 10 each (30 percent of the total paid-up fund) out of the total paid-up fund of Rs. 1 billion.
The Modaraba is intended to engage in the business of generation and supplying renewable energy and renting commissioned renewable energy equipment/plants after the completion of the public offering.
Its sponsors are already engaged in preparatory and development activities such as the origination of renewable energy projects, the execution of binding contracts with the customers, engineering design, and appointment of engineering, procurement, construction, and commissioning contractors.
One of the sponsors, UAE-based Burj Energy International Management Limited, has collaborated with US International Development Finance Corporation (DFC) to successfully develop and commission a 50MW Wind Power Plant in Jhimpir, District Thatta of Sindh, for $126 million. It is believed to be one of the most efficient and successful wind power projects in the Jhimpir wind corridor.
The floatation of a new Modaraba in the area of renewable energy is expected to encourage other players to raise funding through the capital market and further develop Islamic financial institutions in the country.
