Maldives to sell USD 300 million worth 'Sukuk' bonds

The Maldives government will be selling over US$ 300 million worth Sukuk bonds in the international market, the country has revealed.

The government previously planned to sell USD 300 million dollars this year through Japan Bank for International Corporation’s (JBIK).

Speaking at a press conference held at the President's Office on Tuesday, President Ibrahim Mohamed Solih announced plans to sell Sukuk bonds instead of the Samurai bonds as previously planned. The decision was made due to the economic downturn the world is currently facing, said the president.

The President said if the government can sell USD 300 million dollars’ worth of bonds, the negative impact on the economy will be easily manageable.

“Additionally, we are seeking assistance from various countries and we hope for a positive outcome”, said the President.

President Solih said an additional USD 900 million is needed to manage state expenses due to the decline in the government revenue, and with the efforts thus far, USD 102 million has been obtained.

Credit rating agencies, Fitch and Moody’s have revised their ratings on the Maldives due to economic downturn owing to COVID-19 pandemic. They have suggested that it will be challenging for the Maldives to sell financial instruments such as bonds due to the increase in the country's debts.