MPL raises USD 3.2 million in bonds within a month

Maldives Ports Limited (MPL) has successfully sold out the first tranche of private market bonds of USD 12.9 million (MVR 200 million). The demand from investors exceeded expectations, resulting in the rapid sale of the first tranche of the bond.

First National Corporation, the lead agent for MPL said that the first tranche of the bonds received a positive response from both large institutional investors and general retail investors raising an income of USD 3.2 million (MVR 50 million) in just one month through the sale of bonds.

The seven-year bonds MPL were oversubscribed during the subscription period from April 11 to June 19. Investors who participated in the bond offering will receive a seven percent return on their investment. MPL plans to offer an additional USD 3.2 million in bonds by the end of July.

MPL's CEO, Shahid Ali, expressed his satisfaction with the overwhelming response and oversubscription of the bonds highlighting the significance of this achievement for the financial sector in the Maldives. He assured investors who participated in the bond sale that they would receive the expected returns as stipulated in the bond offering.

MPL initiated the bond sale to secure funds for the expansion of its port operations. The company generated a revenue of MVR 800 million and a profit of MVR 100 million in 2022.

This achievement by MPL contributes to the positive momentum in the Maldives' financial market. In the past nine months, three local companies have successfully raised a combined total of MVR 96 million through bond and securities sales.