Maldives issues first ever bond to international market

Friday, 2 June 2017 00:00 - - {{hitsCtrl.values.hits}}

Sold bonds worth $ 200 million on Wednesday
Investors proposed over $ 400 million for these bonds
Finance Minister says trust between Maldives, foreign investors are strong

Maldives, for the first time, has sold sovereign bonds in the international market.

Finance Ministry reported that bonds worth US$ 200 million were sold on Wednesday in Singapore.

A statement released by the Ministry stated that subscribers had doubled a short while after the bonds were issued.

‘The bonds were listed on Singapore Stock Exchange. When the Maldives offered bonds, investors had responded favorably, with over US$ 400 million proposed by investors,’ the statement read.

The bonds are priced at a 7 percent coupon rate. This rate is comparable to new entrants to bond markets and at the same level as nations with an equal credit rating, said Finance Ministry.

The statement added that the Government will be seeking to implement more measures to improve the nation’s credit rating. This, the statement said, in turn will increase investor confidence in the Maldives, lower the yield on bonds. The US$ 200 million earned from the bonds, will be used to finance the development projects listed in the 2017 budget.