The Maldivian government has successfully settled the latest payment for its USD 500 million sukuk, according to a press release issued by the Ministry of Finance today.

The sukuk, issued in 2021, is scheduled to mature in 2026, with semi-annual coupon payments due in April and October.

The Finance Ministry confirmed the timely completion of the October payment, stating that as of October 7, 2024, the government has successfully settled the latest coupon payment.

The ministry emphasized that honoring debt service payments remains a top priority for the Maldivian government, highlighting its ongoing commitment to meeting its financial obligation.

This announcement comes amid foreign media rumors suggesting that the Maldives might default on the sukuk payment due to recent downgrades by credit rating agencies Fitch and Moody's.

However, the Finance Ministry’s statement dismisses these concerns, reaffirming the government’s dedication to maintaining its debt repayment schedule.

The USD 500 million senior unsecured sukuk was initially issued to support the country’s fiscal policies, and the latest payment further reinforces investor confidence in the Maldives' economic stability.