Nasheed suggests selling VIA shares to repay sukuk, calls bond strategy costly

Former President Mohamed Nasheed has proposed selling shares of Velana International Airport (VIA) as a more viable alternative to issuing high-interest bonds, amid growing concerns over the Maldives’ ability to repay a USD 500 million sukuk maturing in April 2026.

In a post on X, Nasheed wrote:  

“Instead of selling bonds at high interest rates, it is better to sell shares of VIA. The proceeds can be used to repay the sukuk, which will reduce debt.”

His remarks follow President Dr. Mohamed Muizzu’s statement on October 13, assuring that the government has no concerns about meeting the sukuk repayment deadline. The President said the administration is working to improve the economy and intends to repay the bond next year.

Nasheed’s comments come amid credit rating downgrades and investor caution. Agencies like Fitch and Moody’s have maintained low ratings for the Maldives, citing debt risks and limited fiscal reforms.

Rather than pursuing a bond sale to Cargill Financial Services Inc. at a high interest rate, it would be more prudent to consider divesting a portion of Velana Airport shares. The generated revenue could be allocated towards settling the Sukuk Bond, thereby reducing the countries…

— Mohamed Nasheed (@MohamedNasheed) November 8, 2025

Nasheed also revisited the controversial 2010 airport concession agreement, under which his government handed over VIA operations to India’s GMR for 25 years. The deal was terminated in 2012 by President Dr. Mohamed Waheed Hassan Manik’s administration.

Defending the original agreement, Nasheed said the cancellation caused significant economic damage. Former Finance Minister Ibrahim Ameer, under President Ibrahim Mohamed Solih, had previously described the reversal as an economic crime.

The idea of selling VIA shares has sparked debate, with critics questioning the long-term implications of privatizing strategic national assets. However, Nasheed argues that such a move could offer immediate relief from mounting debt pressures.