Zameer says April Sukuk to be refinanced after revenue review

Finance Minister Moosa Zameer said the USD 500 million Sukuk due in April will be refinanced following an assessment of state revenue and repayment plans.

President Mohamed Muizzu announced in his presidential address at the opening sitting of Parliament on Thursday that the Sukuk will be refinanced after repaying half of the amount due, adding that the interest rate will not exceed nine percent.

Speaking on state media on Thursday night, Minister Zameer said the government will proceed with refinancing after ensuring the capacity to meet debt obligations. He said the Sovereign Development Fund has the capacity to service the Sukuk.

According to the minister, the Sovereign Development Fund currently holds more than USD 275 million, with usable reserves nearing USD 600 million. He said this indicates the state’s ability to meet the Sukuk obligation even if repayment were required immediately.

Minister Zameer said around USD 150 million is required to complete the refinancing and that current fiscal conditions allow the Maldives to borrow at lower interest rates than previously available.

The Maldives has debt repayments of about USD 1.1 billion due this year. International financial institutions have called for fiscal reforms and reductions in expenditure since 2021. The government has said it will meet all debt obligations on schedule.