On October 10, 2024, a significant event unfolded at the Pakistan Stock Exchange (PSX) as a gong ceremony was held to celebrate the listing of Burj Clean Energy Modaraba (Burj Modaraba). This moment marks a pivotal milestone in Pakistan’s capital markets and a promising shift toward sustainable energy investments. As the country’s first green energy fund compliant with Shariah principles, Burj Modaraba aims to play a crucial role in bridging clean energy projects with investors, thereby fostering the growth of renewable energy initiatives across Pakistan.
A Historic Listing
The ceremony was attended by key figures, including Muneer Kamal, Chairman of Burj Modaraba, and Saad Zaman, Sponsor Director. They were joined by other directors and top management, alongside Shahid Ali Habib, CEO of Arif Habib Limited (the advisor to the issue), and Nadeem Naqvi, Acting CEO of PSX. The striking of the gong symbolized not just the listing itself but the broader aspirations for clean energy in Pakistan.
Burj Modaraba’s entry into the market represents an important development for investors and the environment alike. With a diversified portfolio focusing on solar, wind, energy storage, and energy efficiency solutions, Burj Modaraba aims to address the growing demand for clean energy in Pakistan while adhering to the highest standards of Environmental, Social, and Governance (ESG) principles.
Support from Key Partners
The venture is supported by esteemed partners and investors, including Meezan Bank Limited, Habib Bank Limited, and Arif Habib Corporation Limited, all of whom are committed to promoting renewable energy in Pakistan. AKD Securities serves as the underwriter, while Arif Habib Limited acts as the financial advisor. Additionally, Usmani & Company Shariah Advisors (Pvt.) Limited serves as the Shariah advisor, ensuring compliance with Islamic financial principles.
A Strong Response to the Initial Offering
The Initial Offering of Burj Clean Energy Modaraba was met with enthusiasm, with 10,000,000 certificates available to investors. The offering attracted applications for a total of 10,244,000 certificates, surpassing expectations. Priced at Rs10 per certificate, the issue aimed to raise Rs100,000,000, ultimately securing Rs102,440,000 from investors.
This capital will primarily be used to procure and install solar power solutions for residential clients, targeting a total capacity of 700 KWp within six months of commencing operations. The average capacity per residential site is estimated at 9.86 KWp, resulting in the installation across 71 sites, thereby enhancing access to renewable energy for consumers.
Transforming Pakistan’s Energy Market
Nadeem Naqvi, Acting CEO of PSX, emphasized the significance of Burj Clean Energy Modaraba, stating, “It is an honor to welcome you all at the listing of Burj Clean Energy Modaraba. This is a unique opportunity for Pakistani shareholders. Globally, solar is becoming a leading energy source, and the cost of solar technology is decreasing rapidly due to increased demand.”
Muneer Kamal, Chairman of Burj Clean Energy Modaraba, expressed his vision for the fund: “We are not just a financial entity; we are a catalyst for holistic energy solutions. Our commitment to ESG-compliant financing fosters responsible energy practices, positioning us as leaders in energy as a service.”
The innovative approach of Burj Modaraba signifies a shift from traditional energy supply models to more integrated solutions. Saad Zaman, Sponsor Director, highlighted the firm’s mission to offer comprehensive energy solutions that disrupt the market and deliver energy as a service. This model aims to empower renewable energy projects across Pakistan, promoting not just sustainability but also technological advancements in the energy sector.
The Road Ahead
The response to the Initial Offering and the listing of Burj Modaraba could signal a broader shift in investor interest toward sustainable and Shariah-compliant energy solutions in Pakistan. As the nation grapples with the challenges of energy shortages and a reliance on conventional fuels, initiatives like Burj Modaraba pave the way for a more sustainable future.
Shahid Ali Habib, CEO of Arif Habib Limited, reiterated the importance of this initiative in his remarks at the ceremony. He acknowledged the robust response to Burj Clean Energy Modaraba’s offering and expressed confidence in its pivotal role in Pakistan’s renewable energy sector. With a focus on solar, wind, and energy efficiency, Burj Modaraba is positioned to make significant strides in enhancing the country’s energy landscape.
Conclusion: A Catalyst for Change
The listing of Burj Clean Energy Modaraba at the Pakistan Stock Exchange is not merely a financial milestone; it represents a commitment to sustainable energy solutions in Pakistan. By facilitating investments in renewable energy projects, Burj Modaraba aims to alleviate the country’s dependence on conventional fuel sources and reduce the financial burden of high electricity costs on consumers.
With esteemed partners backing its initiatives and a clear focus on ESG principles, Burj Modaraba is set to transform Pakistan’s energy market. This endeavor will not only benefit the investors and the energy sector but will also contribute significantly to the country’s environmental goals, making it a noteworthy development in the journey toward a more sustainable future.
As the world increasingly shifts toward renewable energy, Pakistan is poised to leverage initiatives like Burj Modaraba to enhance its energy independence and meet the growing demands of its population. The future looks bright for clean energy investments, and Burj Modaraba stands at the forefront of this transformative journey.
Comments