Zameer: Sukuk repayment details will be published after settlement; govt expects improved rating outlook

Finance Minister Moosa Zameer says the government will disclose the full details of how the USD 500 million sovereign sukuk maturing next month will be settled after the payment is completed.

Speaking at a press briefing of the ministerial committee formed to address the economic impact of the Middle East conflict, Zameer said the government plans to refinance part of the sukuk and pay the remainder directly. Completing the repayment, he said, will help ease financing for other projects and could improve the Maldives’ standing with international financial institutions and rating agencies.

Zameer did not specify the terms of the refinancing or the interest rate.

“I am not giving an exact number because the current work will change. But once the securities are paid, we will publish how they were paid and at what interest rate,” he said.

The minister said the government has secured USD 650 million to meet the sukuk obligation and will retain a balance after settlement. President Dr Mohamed Muizzu previously told Parliament that the interest rate on the refinanced portion will not exceed nine percent.

Zameer earlier stated that the government needs to borrow around USD 150 million to complete the refinancing, adding that the Maldives’ fiscal position now allows borrowing at significantly lower rates.

The Maldives faces over USD 1 billion in debt repayments this year, while major rating agencies continue to keep the country at junk status, citing concerns over investor confidence and fiscal pressures.