According to the watchdog and company officials, Burj Energy International Management, a UAE-based renewable energy producer, has received approval from Pakistan’s Securities and Exchange Commission (SECP) to float the country’s first green energy modaraba worth Rs1 billion (approximately $5.5 million).
Modarabas was Pakistan’s first Islamic company model with a legal framework and specific restrictions. Burj Modaraba Management Company will oversee the permitted flotation of the Burj Clean Energy Modaraba.
“To minimize the country’s carbon footprint, this is Pakistan’s first renewable energy Modaraba, which will invest in renewable hybrid, solar, and wind projects,” said Aamer Chishti, director of Burj Energy International.
According to him, the flotation of the new modaraba will help the financial services industry create Shariah-compliant financial goods. After going through the proper channels, the Burj modaraba will be listed on the Pakistan Stock Exchange (PSX) within a year, with a public offering of 30 Rs10 modaraba certificates.
“The first paid-up capital would be Rs1 billion,” Chishti added, “of which through the stock market Rs 300 million (30%) will be generated and the other Rs700 million (70%) will be sponsored by Burj Energy International Management International.”
In Asia, the firm has produced 52 megawatts of renewable energy and cut carbon emissions by 86,880 tonnes. It has joint ventures in Bangladesh and Malaysia and is aiming to start operations in Sri Lanka, according to Chishti. According to a 2020 study report by The Pakistan Credit Rating Agency, Pakistan has 28 modarabas with a combined asset base of almost Rs50 billion (PACRA).