Maldives Settles USD 24.6 Million Sukuk Coupon Payment

The Maldives has settled a coupon payment of USD 24.6 million on its USD 500 million senior unsecured sukuk, which was issued in 2021 during the Maldivian Democratic Party (MDP) administration.

The sukuk, an Islamic bond, carries semi-annual coupon payments scheduled for April and October and is set to mature in 2026. The latest payment, due on Wednesday, has been successfully completed, according to the Ministry of Finance.

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The ministry stated that meeting debt service obligations remains a top priority for the government and reaffirmed its commitment to honouring all financial responsibilities to creditors and investors. It also assured that the sukuk will be fully settled upon its maturity in April 2026.

The government said it continues to implement measures to strengthen fiscal responsibility and improve the country’s repayment capacity ahead of the final sukuk payment.

Maldives continues to face significant external debt pressures, with total public debt currently estimated at 134 percent of the country’s GDP. The nation is due to repay USD 1.1 billion in mid-2026. Despite the heavy debt burden, the government has expressed confidence in its ability to meet its obligations, with President Dr Mohamed Muizzu recently stating that there is no cause for concern as regular repayments are being made.