Maldives settles USD 24.6M coupon payment on USD 500M sukuk

The Maldives has settled the latest coupon payment of USD 24.6 million on a USD 500 million senior unsecured sukuk.

The Maldivian government issued the USD 500 million sukuk or Islamic bond in 2021, during the Maldivian Democratic Party (MDP) administration. It is set to mature in 2026.

The sukuk pays a semi-annual coupon, with payments scheduled for April and October.

The latest coupon payment was due on Wednesday.

In a statement on Wednesday afternoon, the Finance Ministry announced that the government has successfully settled the latest coupon payment of USD 24.6 million.

The Finance Ministry said that honoring debt service payments remains a key priority of the government.

“The timely settlement of this coupon payment underscores the government’s commitment to meeting its debt obligations to creditors and investors,” added the ministry.

The Finance Ministry provided assurance the USD 500 million sukuk will be fully paid off by the time it matures in April 2026.

The Finance Ministry added that the government has been implementing measures to enhance fiscal responsibility and improve the country’s ability to repay debts as it prepares to make the last payment on the sukuk.

Maldives has been struggling under the weight of staggering external debt obligations, which now stands at 134 percent of the country’s GDP.

The country has a staggering USD 1.1 billion due in mid-2026. The government has repeatedly expressed confidence in its ability to meet the external debt obligations, with President Dr. Mohamed Muizzu recently telling the public that there’s no cause for alarm, and that the country has been making regular debt repayments.