Maldivian Sukuk value climbs

With Maldives' economy improving, Maldivian sukuk values have started to climb significantly over the past months.

In early April, Maldivian sukuk value on the global market was at USD 64.72. However, by Monday, the value increased to MVR 87.44.

The sukuk value indicates confidence in the global market in Maldives' economy.

Finance Ministry has said that the government is regularly paying the coupon payments on the USD 500 million (MVR 7.7 billion) sukuk sold in 2021 by the previous administration.

Under sukuk, two coupon payments need to be paid to investors each year. The last coupon payment of USD 25 million was paid last April. The second coupon payment of this year will be due in October.

The sukuk taken by the previous administration at 9.875 interest rate is listed on the Abu Dhabi stock market.

Finance Ministry said that the increase is sukuk value exhibits the government's policies to strengthen Maldives' economy.

The sukuk will mature, with the total of USD 500 million becoming due, in 2026. Along with other external loans, the State will need to pay USD 1 billion in debt repayment that year.

The government reported advancements in negotiations with foreign nations and initiatives to refinance existing loans, aimed at easing the national debt burden.