Pakistan Mortgage Refinance Company Issues PKR 3.1 Billion Sukuk Musharakah to Promote Pakistan’s Housing Finance

Pakistan Mortgage Refinance Company (PMRC) and its Partner Financial Institutions have issued Sukuk Musharakah (Sukuk) worth PKR 3.1 billion via private placement to promote housing finance in Pakistan, according to local media reports.

Why it matters?

This is the first time in Pakistan’s financial history that the private sector has issued Sukuk Musharakah with the aim of promoting the housing sector. The Sukuk has a unique Shariah-compliant structure under which investors and PMRC will enter into a Musharakah Agreement to create Musharakah in the Housing Finance Portfolio. Proceeds of the Sukuk will be used by PMRC to further develop Shariah-compliant housing and residential mortgage financing, as well as the Housing Finance Portfolio of Isla...