ISLAMABAD: The Habib Metropolitan Modaraba Management Company Pvt Ltd (HMMMCPL) has been issued formal authorisation by the SECP to float another modaraba of Rs300 million under the name of ‘Habib Metro Modaraba’.

A wholly owned subsidiary company of Habib Metropolitan Bank Limited (HMBL), 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.

The initial paid-up fund of Habib Metro Modaraba will be Rs300m, out of which modaraba certificates of Rs90m will be subscribed by HMMMCPL, HMBL and associates while remaining certificates worth Rs210m shall be offered to the public. The certificates of modaraba will be listed on the stock exchange.

On Feb 21, 2017, the Securities and Exchange Commission of Pakistan’s Religious Board for Modarabas in its 46th meeting had cleared and certified that the proposed business of the modaraba specified in its prospectus is not contrary to the injunctions of Islam. The decision was taken under Section 10 of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980.

The SECP hopes the addition of Habib Metro Modaraba to the modaraba sector will promote the business in conformity with Islamic injunctions and attract the public to invest in Islamic financial institutions.

Published in Dawn, March 14th, 2017