Maldives looks to fund hospital project via Islamic bonds

Maldives government would look to sell Islamic bonds or sukuk to fund the 25 storey state run hospital project.

According to the proposed state budget for next year, the issuance of sovereign Islamic bonds to foreign parties is the first Islamic financial instrument to be sold by the Maldives.

The funds from its sale will be used for the ongoing development of the new 25 storey Indira Gandhi Memorial Hospital (IGMH) building worth MVR2.1 billion.

The government hopes to raise MVR1.44 billion in Sukuk issuance and would divert the entire funds to the hospital project.

According to the budget, funds for the remaining key projects would be raised through sale of conventional bonds.

The project, which was not included in the state budget of this year, was awarded to Singapore firm, Chang Hua Construction.

Government plans to complete the new hospital wing before 2018.