VIA share sale better option than high-interest bond issue, Nasheed says
The largest single debt repayment next year involves USD 500 million in securities sold in the international financial markets in 2018 and 2019.
Former President Mohamed Nasheed has proposed that proceeds from selling shares in Velana International Airport (VIA) be used to settle part of the government’s external debt instead of issuing new bonds at higher interest rates.
In a post on X on Saturday, Nasheed said it would be more practical to use the revenue from a share sale to reduce state debt than to borrow through costly bond issuances.
According to the proposed 2026 State Budget, the largest single debt repayment next year involves USD 500 million in securities sold in the international financial markets in 2018 and 2019. The government plans to refinance or defer around USD 450 million of that amount and pay the remaining USD 150 million through the Sovereign Development Fund (SDF).
Nasheed was referring to the government’s plan to raise funds from Cargill Financial Services for budget support. He said the state should instead consider selling shares in VIA and use the proceeds to pay off the sukuk due next year.
“This will reduce the total debt of the state,” Nasheed wrote.
The USD 500 million sukuk matures in April 2026. The government has stated that arrangements are in place to ensure repayment by the due date.
