The Maldives is facing mounting investor scepticism over plans to refinance a $500 million Sukuk bond maturing in April 2026, former president Mohamed Nasheed warned on Monday, citing the country’s worsening financial outlook.
“The Govt may plan to refinance the Sukuk with a new bond but appetite for another $500m seems uncertain due to the country’s current financial struggles,” Nasheed said in a post on X.
The country is already under pressure from its existing Sukuk, which matures on 8 April 2026. The debt instrument has lost more than 70% of its value, a sign of investor anxiety over repayment risks. “This has led to a significant increase in yield, making it more expensive for the country to borrow,” Nasheed said.
Ratings agencies Fitch and Moody’s have maintained their previously downgraded ratings of the Maldives in their most recent periodic reviews, citing ongoing concerns about the government’s ability to manage its growing debt burden. Fitch Ratings currently assigns the Maldives a ‘CC’ rating on its Long‐Term Foreign-Currency Issuer Default Rating (IDR). Moody’s meanwhile rates the Maldives at Caa2, also with a negative outlook. Nasheed cautioned that the downgrade “could impact investor appetite for new bonds.”
“Some experts suggest the Maldives could be at risk of defaulting on its Sukuk bond, which would further erode investor confidence and make it harder for the country to secure new funding,” Nasheed said, adding that “the country’s financial struggles and high debts may deter investors unless they are convinced by the government’s plans for economic reform and debt management.”