Dubai, UAE – Reuters reports that Maldives has sold MVR 1.5 billion (USD 100 million) in sukuk, Islamic bonds, on Monday.
According to reports, a document shows that the existing bods were used to reopen the USD 200 million transaction that Maldives did last month. The current amount taken is at an interest rate of 10.5%.
The transaction was arranged by Emirates NBD Capital, HSBC and the Islamic Corporation for the Development of the Private Sector (ICD).
The Government of Maldives debuted USD 200 million as sovereign Sukuk on 29 March 2021, with a five-year maturity. The proceeds of the issuance will be used to settle tender offers for the Government’s 2022 bonds.
The Sukuk follows an Ijara structure with a Murabaha component and will be supported by rental income from assets which are owned by the Government of the Republic of Maldives.
While the bonds were rated B3 by Moody’s and the settlement of the issue will be on April 8, Reuters also reported that the 144A/ Reg S bonds would be issued at a discount and the tender proceeds would be capped in alignment of the net proceeds of the new issue.
Finance Ministry had previously told that Dharumavantha Hospital building will be mortgaged under a Government owned Special Purpose Vessel (SPV) for the purpose of the USD 200 million sukuk.
Ministry had also stated earlier that when the sukuk term ends, the Ministry of Finance will repurchase the asset from the SPV. The statement released by ministry on November 11, 2020 stressed that this was not a sale of the building to any party.