KARACHI: A gong ceremony was held at the Pakistan Stock Exchange (PSX) to mark the listing of Burj Clean Energy Modaraba.
Burj Modaraba is the first green energy fund in accordance with Shariah principles to be listed on the Stock Exchange on the Growth Enterprise Market (GEM) Board of PSX.
The gong was struck by Muneer Kamal, Chairman, Burj Modaraba; Saad Zaman, Sponsor Director, Burj Modaraba; other Director(s) and top management of Burj Modaraba, amidst the presence of Shahid Ali Habib, CEO of Arif Habib Limited (Advisor to the Issue); Nadeem Naqvi, Acting CEO of Pakistan Stock Exchange, and senior management of PSX.
The listing of Burj Modaraba marks a pivotal moment for Pakistan’s capital markets and for sustainable energy investments. As Pakistan’s first green energy fund, Burj Modaraba serves as a bridge for clean energy project between developers and investors and fosters the growth of renewable energy initiatives across the country.
Burj Modaraba is supported by esteemed partners and investors such as Meezan Bank Limited, Habib Bank Limited and Arif Habib Corporation Limited, who are committed to promoting the use of renewable energy in Pakistan. AKD Securities serves as the underwriter, with Arif Habib Limited (AHL) as the financial advisor and Usmani & Company Shariah Advisors (Pvt.) Limited as the Shariah advisor.
With a diversified portfolio that is intended to include solar, wind, energy storage, and energy efficiency solutions, Burj Modaraba is positioned to meet the growing demand for clean energy in Pakistan. The fund aims to alleviate the country’s reliance on conventional fuel sources and reduce the financial burden of high electricity costs on consumers, while adhering to the highest standards of Environmental, Social, and Governance (ESG) principles.
In the Initial Offering of Burj Clean Energy Modaraba, the Modaraba offered 10,000,000 certificates to the investors, against which applications for a total of 10,244,000 certificates were received. The entire Issue was offered through Fixed Price Mechanism at a Price of Rs 10/- per certificate. The amount to be raised was Rs 100,000,000/-, however subscription for an amount of Rs 102,440,000/- was received. The capital raised is to procure and install Solar Power solutions for Residential clients up to a total capacity of 700 KWp within 6 months of business commencement. The average capacity per residential site is assumed to be 9.86 KWp, resulting in a total of 71 sites for the installation of the entire 700 KWp capacity.
Welcoming the guests at the gong ceremony, Nadeem Naqvi, Acting CEO, Pakistan Stock Exchange said it is a first of its kind of opportunity for Pakistani shareholders. Globally, solar is now a leading energy source, and it will become even more so in the near future. The cost of solar panels and solar plants is reducing sharply because the demand is increasing which is being met by increasing supplies. I think there cannot be a better and more opportune time than now for such an investment to come for investors, he added.
He said there are many private sector solar panel distributors and installers but nothing has been done in an institutionalised manner. This partnership is going to give us the model that will grow by itself and also attract a large number of new entrants in the market. An interesting factor of this fund is that it is Shariah compliant. “Thereby, we have an effective green energy product on Shariah compliant basis. I think you couldn’t get the best of both worlds anywhere else,” he said.
Speaking at the ceremony, Muneer Kamal, Chairman Burj Clean Energy Modaraba said Burj Clean Energy Modaraba is set to transform Pakistan’s energy market. “We are not just a financial entity; we are a catalyst for holistic energy solutions, positioning ourselves as leaders in energy as a service. Our commitment to ESG-compliant financing fosters responsible energy practices”, he added.
Saad Zaman, Sponsor Director of Burj Modaraba, said, “At Burj Modaraba, we are more than just a Power Purchase Agreement (PPA) provider. We are committed to offering comprehensive energy solutions that disrupt the market by delivering energy as a service. Our focus on environmentally friendly and ESG-compliant financing will empower renewable energy projects across Pakistan. We are also excited to bring cutting-edge energy storage technologies to the country, having already invested in Dubai. We are also committed to promote E-mobility and the electric vehicle (EV) sector”.
Shahid Ali Habib, CEO of Arif Habib Limited (AHL), expressed his enthusiasm over the strong response to Burj Clean Energy Modaraba’s Initial Offering (IO). He highlighted Burj Clean Energy's pivotal role in Pakistan's renewable energy sector, with a focus on solar, wind, and energy efficiency solutions.
Expressing his views on the listing of Burj Clean Energy Modaraba, he said the Offering marks a significant milestone, launching the company's renewable energy initiatives. The transaction enables a smooth entry into Pakistan’s expanding energy market, offering Shariah-compliant, diversified energy solutions. AHL is proud to have acted as Advisor to this Issue, and we look forward to bringing more innovative companies to Pakistan Stock Exchange.
Fareed Alam, CEO AKD Securities Limited (Underwriter to the Issue), Aamir Irshad, Group Head, Corporate, Commercial and Investment Banking (Pre-IPO Investor), Nasim Beg, CEO Arif Habib Consultancy (Pvt.) Limited, and Zia Ul Hasan, Group Executive – Operations & Branch Banking, Meezan Bank Limited (Pre-IPO Investor & Banker to the Issue) also attended the ceremony.
Copyright Business Recorder, 2024