Maldives first sovereign bond issuance oversubscribed by double; underscores international confidence in the Government’s economic program
· Unprecedented interest in inaugural sovereign bond issue for the Maldives
· Bonds oversubscribed by double
· Government sees successful issue as concrete endorsement of its economic policies
· Finance Minister: “The ability to raise financing from international markets with such ease indicates the maturity the country has reached”
MALE’ – 1 June 2017: Maldives’ inaugural international sovereign bonds hit the Singapore Stock Exchange to great success, yesterday the 31st of May. The response from the market was extremely encouraging: the order book was oversubscribed by double. With this strong debut, the government believes the bond will open the door for public and private companies in the Maldives to tap into international markets.
The bond investors include asset managers and banks from both Asia and Europe. The government believes successful issuance demonstrates the confidence and willingness of investors from across the world to partner in the development journey of the Maldives.
The US$ 200 million 5-year maturity bond has a coupon rate of 7% per annum. The rate is comparable to the rates received by other debut sovereign bond issues, and recent emerging market bond issues of sovereigns with a similar credit ratings as the Maldives. The bond was rated B2 by Moody’s Investors Services and B+ by Fitch Rating, in line with their respective sovereign credit ratings for the Maldives. The government gives the assurance that it will continue to take the steps identified by the rating agencies to improve the country’s credit ratings and to generate greater investor confidence and a lower yield on the bond.
Commenting, the Maldives Minister of Finance and Treasury Ahmed Munawar stated:
“The government is very pleased with this sound expression of confidence in the economic program we have pursued. Given this was our first international sovereign bond issuance, this is a superb result. This is as strong of an endorsement of economic policy as any government could hope for.
With this debut bond issuance for the Maldives, the country has taken a significant step forward. The ability to raise financing from international markets indicates the maturity the country has reached since graduating from Least Developed Country (LDC) to a middle-income economy. It is testament to President Yameen’s sound policy framework, diversifying the Maldivian economy and securing our citizens with a prosperous future. This is another stride in the right direction.”