KARACHI, Feb 7: The House Building Finance Corporation has declared financial close of Pakistan’s first mortgaged-backed Rs1.5 billion Sukuk issue.

The corporation has mandated a consortium of Standard Chartered Bank, AMZ Securities and Emirates Global Islamic Bank to act as advisors and arrangers of the Sukuk issue.

Investors will get return on semi-annual basis and the Musharaka units will be re-purchased by the HBFC in equal instalments starting from the 18th month of first drawdown.

The Sukuk issue is being hailed as a landmark achievement in the development of Islamic finance industry in the country. In order to provide funding to its business growth plan, HBFC intends to raise market-based funding through instruments like Sukuk, securitisation and REITs etc.

The HBFC has also announced the country’s first Islamic Real Estate Investment Trust for which assets are already available with the corporation in prime location at Lahore, Islamabad, Peshawar and other major cities, says a press release.