Home / Business and Economy / Maldives Repays $525M Sukuk Amidst Economic Headwinds
Maldives Repays $525M Sukuk Amidst Economic Headwinds
4 Apr
Summary
- Maldives settled its first Islamic bond worth $500 million.
- A coupon payment of $24.68 million was also made.
- The settlement helped reduce the nation's overall debt.
The Maldives has successfully settled its first Islamic bond, a $500 million sukuk originally issued in 2021. The repayment, which occurred this month, included the $500 million principal along with a $24.68 million coupon payment. This financial maneuver has allowed the island nation to reduce its overall debt burden. The statement highlighted that the country's fiscal and external position significantly deteriorated following the COVID-19 pandemic and the Russia-Ukraine war in 2022. To counter these effects, the government initiated revenue-enhancing measures in 2024. Despite projected GDP growth for 2026, ongoing Middle East tensions are anticipated to impact medium-term economic prospects. Authorities, however, remain confident in maintaining public services and ensuring fuel supply.
