BML Sukuk to fund economic growth initiatives, not budget support: Zameer
He noted that the financing programme is intended to support medium-term economic growth and contribute to the expansion of the country's revenue base.
Minister of Finance and Public Enterprises Moosa Zameer has stated that the proposed USD 300 million Sukuk being prepared by the Bank of Maldives is intended to finance private sector investment rather than government expenditure.
The minister made the remarks on Wednesday in a post on X following the decision by Fitch Ratings to upgrade the Maldives’ sovereign credit rating from 'CC' to 'CCC-'.
According to Zameer, the Sukuk is a joint initiative between the government and Bank of Maldives aimed at supporting economic activity and investment, particularly in tourism-related projects in the northern and southern regions of the country.
“As I have stated previously, the USD 300 million Sukuk proposed by the Bank of Maldives and guaranteed by the Government of Maldives is neither intended for budget support nor for the cash flow requirements of the Government,” he said.
He noted that the financing programme is intended to support medium-term economic growth and contribute to the expansion of the country's revenue base.
The minister said the initiative is expected to help create investment opportunities in the private sector while supporting the government's fiscal objectives in the years ahead.
To assess investor interest ahead of the issuance, Bank of Maldives conducted non-deal roadshows between 28 April and 8 May in Hong Kong, London and Singapore. During the programme, bank representatives met fund managers from Asia, the Middle East and Europe.
Zameer also said the recent credit rating upgrade reflected growing confidence in the government's fiscal and economic policies following the repayment of the Maldives' USD 500 million sovereign Sukuk in April.
“The Government of Maldives remains firmly committed to achieving macro-fiscal stability and restoring the country’s debt sustainability,” he said.
“The upgrade of the Maldives’ sovereign credit rating by Fitch demonstrates that the Government’s planned fiscal reforms and economic measures are gaining credibility and international recognition.”
The Maldives is also rated by Moody's Investors Service. In November last year, Moody's affirmed the country's rating at 'Caa2' and revised its outlook from negative to stable.
So far this year, the government has completed repayment of a USD 500 million sovereign Sukuk, a USD 50 million debt obligation to India and a USD 400 million currency swap facility obtained from the Reserve Bank of India.
