Ministry of Finance and Treasury has revealed that the Maldives' inaugural international sovereign bonds hit the Singapore Stock Exchange to great success, on the 31st of May.
The response from the market was extremely encouraging: the order book was oversubscribed by double, according to the ministry. With this strong debut, the government expressed confidence that 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 successful issuance demonstrates the confidence and willingness of investors from across the world to partner in the development journey of the Maldives, according to the government.
The USD 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 assured 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.