Dharumavantha to be mortgaged for USD 300 million bond

Dharumavanatha Hospital | Photo: PSM

Male’, Maldives – Maldives highest building Dharumavantha hospital is to be mortgaged for a bond of USD 300 million.

Minister of Finance Ibrahim Ameer, in a now publicized letter to the President’s Office, explained that efforts to mortgage a bond of USD 300 million is underway, with the Islamic Corporation for the Development of Private Sector (ICDC).

The bond is to be sold following Islamic Shariah regulations, after making a 100 percent Government owned Special Purpose Vessel (SPV) and transferring more than 51 percent of beneficial ownership of the bond to the SPV.

The letter noted that after evaluating current government assets, the most suitable asset for this purpose is the Dharumavantha Hospital.

Minister also asked the president to request Male’ City council to transfer ownership of Dharumavantha Hospital to the Ministry of Finance, as such bonds can only be issued from Finance Ministry assets.

Minister Ameer has previously said that share sales are expected to bring in MVR 462.6 Million in revenue for the 2021 budget, a USD 300 Million bond is also included in next year’s budget.