The Maldives government has successfully settled a $500 million Sukuk issued by the previous administration in the international market. The Ministry of Finance confirmed today that the debt has been fully repaid, including accrued interest.

Originally issued in 2021, the Sukuk was utilized to refinance a $250 million ‘Sunny Side’ bond previously taken by the state. According to a statement released by the Ministry of Finance, the government utilized the Sovereign Development Fund (SDF) and state reserves to facilitate the repayment.

The total payment amounted to $524.68 million, comprising the $500 million principal and $24.68 million in interest. The Ministry highlighted that this significant settlement will result in a reduction of the national debt-to-GDP ratio, bolstering the country’s fiscal standing.

Beyond debt management, the Ministry stated that the government’s current priority is ensuring the uninterrupted provision of essential services and commodities, such as fuel, to the public while maintaining economic momentum. Collaborative efforts with international financial institutions are also underway to secure further financial assistance.

Additionally, the Ministry announced the successful conclusion of negotiations with the Abu Dhabi Fund to roll over a $100 million bond due by the end of this month, reflecting continued confidence from international partners.