Maldives’ Government Hires Banks to Arrange USD-Denominated Benchmark Sukuk Issuance; B3 Rating Assigned by Moody’s
March 23, 2021
Email The Government of Maldives, acting through the Finance Ministry, has hired a group of banks to arrange a USD-denominated issuance of benchmark Sukuk, according to a document released on the 22nd of March 2021. Moody’s Investors Service (Moody’s) has assigned a B3 backed senior unsecured rating to the proposed Sukuk issuance.
Why it matters?
Proceeds of the Sukuk issuance will be partly used to fund a tender offer for the Government’s outstanding USD 250 million bonds at 7% that are set to mature in June 2022. The remaining proceeds from the Sukuk issuance will be used to fund development projects in Maldives. The Sukuk issuance comes as Maldives continues to diversify its borrowing away from China.
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