The government has paid USD 25 million (MVR 386 million) as coupon payment (interest) for the USD 500 million (MVR 7.7 billion) sukuk sold by the previous government in 2021.
The government has paid USD 25 million (MVR 386 million) as coupon payment (interest) for the USD 500 million (MVR 7.7 billion) sukuk sold by the previous government in 2021.
While the interest payment has been settled, many, including international media, earlier raised concerns that the Maldives may be unable to pay the due amount and go into default. These concerns were raised after Maldives' credit rating was decreased by both Fitch and Moody's.
Ministry of Finance said that the payments was settled today, through government revenues.
The sukuk was taken at a 9.875 percent interest rate. With this month's payment, the total coupon payments made this year has reached USD 50 million.
Every year, two coupon payments are made to investors under the sukuk. The government will have to make coupon payments of USD 50 million next year as well, in April and October.
The sukuk sold by the government is listed on the Abu Dhabi stock market.
Last month, sukuk crashed in the market, with the price seeing a sharp decline. However, the rates are going up again.
The sukuk will mature in 2026, with USD 500 million to be paid then. That year, the State will have to settle debts of USD 1 billion.
Total state debt this year is projected to reach MVR 129 billion.
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