The Maldives will not default on the US$25 million coupon payment for the Sukuk, Minister of Finance Mohamed Shafeeq has said.
Speaking to local media on Friday, Shafeeq said that the first payment of the twice-yearly coupon payment had already been made in March and that there is no difficulty in fulfilling the payment due on 8 October.
While the Sukuk matures and is due in full in 2026, the Maldives, in addition to next month’s coupon payment, will have to pay US$50 million in 2025 and US$25 million in 2026.
The price of the securities fell due to rumours that the Maldives’ reserves were running out, Shafeeq acknowledged while going on to emphasise that it had never been exhausted.
“Reserves will be better now. MIRA [Maldives Inland Revenue Authority] collections are also much better than before,” he said.
Even if the price of the Sukuk had fallen, it will rise again when the situation improves, the Minister said.
The Ibrahim Mohamed Solih administration had listed the US$500 million (approximately MVR 7.7 billion) securities, sold in 2021, on the Abu Dhabi Securities Exchange (ADX), with the debut listing gaining attention in international media.
According to the latest Maldives Monetary Authority (MMA) figures, the state’s official reserves stand at US$395 million. The administration, in order to bolster reserves, is working to facilitate a US$400 million currency swap facility through the Reserve Bank of India (RBI) while also planning to issue a green bond.