The Maldives Stock Exchange (MSE) has stated that a substantial amount of funds has been generated via the private market platform they introduced named "Viyana", for the purpose of finding more investment opportunities for the general public and for institutional investors to invest in Maldivian companies.
The platform was introduced in September 2022 and more than MVR 627 million has been generated for businesses. The money was generated via the Viyana boards 12 listed securities. It includes five sharia-compliant Islamic instruments.
MSE said in addition to buying and selling shares from publicly listed companies, the securities market has the potential to play an important role for businesses. They also highlighted that private businesses will have important opportunities to secure funding from investors without publicly listing their companies on Viyana. Companies that have used the platform include companies from the health, education and construction sectors, said MSE.
MSE said Viyana is a good opportunity for those who want to invest to finance Maldivian businesses. The general public and institutional investors can register to the platform, study investment information and check whether the investment requirements fit into their needs.
MSE stated banks and financial institutions have participated in many proposals via the Viyana platform. The company also said that more banks are thinking of investing via the platform.
Viyana is an "end-to-end" digital platform. Securities are issued, investors can subscribe, shares/securities can be given out and sharing of information can be managed from the platform. The platform facilitates separate registration options for those who issue securities, general investors and institutional investors.
Businesses that make use of Viyana can issue security loans based on the amount of profit generated, repayment period and, if need be, collateral conditions. Instead of looking at just the investment profits, investors need to look at all conditions. This includes the deadline for repayment and risks linked to the investment.
While the average subscription prices for Viyana securities has increased by more than 85 percent, it has seen subscription rates for the amount requested for most proposals or for an even higher rate. Around an 8 percent return can be seen yearly on average for the securities. Even though it is for the profit that has been received on average as of yet, there is no assurance that more profit would be generated off of that amount in the future. And so, it is important that investors research the financial status and proposal information of securities issuers before they subscribe.
MSE and Maldives Securities Depository (MSD) CEO Aushan Latheef said that the real success behind the Viyana platform are companies that have never thought about the capital market making use of the platform now to generate capital. He also said while the company has established the platform and infrastructure, the company's hope is for more businesses and investors to make use of the platform.
MSE and MSD provide the infrastructure needed for the market. This includes issuer registration, on-boarding investors, ensuring validity and reporting transactions. The platform is operated under regulations passed by the Capital Market Development Authority (CMDA). MSD also serves a role as a paying agent and registrar for Viyana securities.
While around MVR 200 million in interest and profit has been deposited for investors currently, MSE highlighted that none of the 12 securities that have been issued have defaulted in payments according to their schedule. MSE said that because of this record, they do not downplay acknowledging the importance of the risk of every new security that is issued and fund repayment requirements.
Further development of Viyana's efforts is an important piece of work that connects MSE and MSD via their strategic plan. MSE is introducing three additional securities for next year, with them securing more opportunities for more companies to make use of the platform.
Their long-term strategy includes forming the "Viyana Growth Board", in order to provide opportunities for small companies. MSE is also working with the relevant parties to develop sustainable financing opportunities so that more options to secure capital for businesses can be facilitated.
While companies are making plans to expand their business, MSE said that Viyana is an opportunity for an additional financing path. Businesses and investors can register to Viyana and find information related to its offerings.
