The first-ever government security has been listed on the main board of Maldives Stock Exchange.
A special ceremony was held at the Ministry of Finance to commemorate this historical event. The ceremony was attended by representatives from the Maldives Stock Exchange, Capital Market Development Authority and Maldives Pension Administration Office.
The listing was issued by the Ministry of Finance in line with the government's medium-term debt management strategy. The ministry issued a listing of a MVR50 million Treasury Bonds (T-Bonds) on the main board of Maldives Stock Exchange. The T-Bonds were issued with a coupon rate of 5.5% per annum and the maturity set for December 2028, were successfully placed with a total of 50,000 bonds at MVR1,000 per bond. This will pave the way for businesses and the general public to buy and sell government securities in the secondary market.
During the listing ceremony, Minister of Finance Dr. Mohamed Shafeeq emphasised that this listing marks the achievement of a historical milestone towards the development of domestic securities market, allowing to create a liquid and active secondary market in the Maldives. He highlighted that investing in government securities offers a promising avenue for individuals seeking to invest their savings and generate profits. Expressing confidence in the rapid fruition of investments, he anticipated significant growth once the stock exchange becomes active and the capital market develops. He added that the finance ministry has made plans to develop the capital market in collaboration with the Maldives Stock Exchange.
The finance ministry stated that the listing serves as the initiation of active trading of government securities in the secondary market, enhancing the accessibility of government bonds to a broader investor base and also fosters a more dynamic and liquid securities market. The listing of long-term treasury bonds on the Maldives Stock Exchange and the facilitation of trading in the secondary market are important steps taken by the government to further expand and develop the domestic financial market. The government stated that it will continuously work towards the development of the domestic market and plans to issue short-term and long-term securities to the market in the coming days.