Maldives plans new $500 million bond sale to refinance 2026 Sukuk

The Maldives plans to issue a new $500 million Islamic bond to refinance an existing $500 million sukuk maturing next year, according to Maldives Monetary Authority (MMA) Governor Ahmed Munawwar.

Speaking to CNN Economics on the sidelines of the Islamic Development Bank (IsDB) Annual General Meeting, Governor Munawwar said the upcoming repayment is the Maldives’ largest external debt obligation due in 2026.

The sukuk was originally issued in 2018 and 2019 through a company named Maldives Securities Issues Limited, with assets transferred under the company to support the issuance. The bond was sold in the international market with assistance from the Islamic Corporation for the Development of the Private Sector and the wider Islamic Development Bank Group.

Munawwar confirmed that the Maldives aims to reissue securities when the sukuk matures on 8 April 2026. He said there is already a framework in place for issuing Islamic securities in the domestic market, and that the government is exploring options to leverage this infrastructure.

Failure to repay the $500 million bond would result in a default, he noted.

In total, the Maldives faces more than $1 billion in debt repayments next year. The sukuk represents the most significant portion of that total.

Governor Munawwar also outlined broader economic goals, stating that the Maldives aims to double the size of its financial sector within the next three to four years. While the economy remains dependent on tourism, the government is working to expand financial services—particularly Islamic finance—as a new growth area.

"Tourism is a tool that will facilitate us in this regard," Munawwar said.

He added that the MMA has begun developing a judicial and legal framework for Islamic bond issuance. Efforts are underway in partnership with the Islamic Development Bank to draw lessons from countries such as Malaysia and Indonesia.