Maldives settles 25 mln USD sukuk coupon payment amid credit rating downgrades

COLOMBO, Oct. 7 (Xinhua) — The Maldives has settled the latest coupon payment of around 25 million U.S. dollars on a 500-million-dollar senior unsecured sukuk, a day before it had been due, the Maldivian Ministry of Finance said in a statement on Monday.
The Maldivian government issued the 500-million-dollar sukuk or Islamic bond in 2021, which is set to mature in 2026, and the sukuk pays a semi-annual coupon, with payments scheduled for April and October, the statement said.
The latest coupon payment of 25 million dollars was due on Tuesday. “As of Oct. 7, 2024, the government has successfully settled the latest coupon payment,” the ministry said in the statement.
“The timely settlement of this coupon payment underscores the government’s commitment to meeting its debt obligations to creditors and investors,” the ministry said.
The Maldives has an external debt service obligation of about 600 million dollars in 2025 and more than 1 billion dollars in 2026.
Citing default risks, Moody’s has downgraded Maldives’ credit rating from CAA1 to CAA2, while Fitch downgraded the country’s credit rating from CCC+ to CC in the last two months. ■