The government has successfully executed a USD 25 million (MVR 386 million) Sukuk coupon payment on the USD 500 million (MVR 7.7 billion) bond issued in 2021 by the administration of former President Ibrahim Mohamed Solih.

 

The interest payments are made semi-annually in April and October. The Sukuk matures next April, at which point the full USD 500 million principal amount becomes due. The Ministry of Finance has confirmed that a total of USD 525 million (including the final coupon) will be settled in April 2026.

 

This Sukuk, which carries an interest rate of 9.875 percent and is listed on the Abu Dhabi Stock Exchange, contributes to an estimated USD 1 billion in total debt due for repayment next year.

 

Recognizing the significant debt burden, the government is pursuing relief from its major creditors, China and India. Progress includes the rollover of a USD 100 million bond with the State Bank of India (SBI).

 

Furthermore, the Chinese Ambassador to the Maldives has indicated a recently reached agreement to defer Maldivian debt, though the specifics of the arrangement await a formal announcement from both nations.