The government has announced that several major state-owned properties previously held as collateral under a sukuk (Islamic bond) have now been released, following the full settlement of the debt earlier this month.
President Mohamed Muizzu said the $524 million sukuk was repaid on the 2nd of this month without the need to sell state assets or incur additional borrowing, describing the move as a significant financial milestone.
Key State Assets Freed
According to the President, four major government properties that had been mortgaged under the sukuk have now been secured and released. These include:
- Dharumavantha Hospital
- Iskandhar School
- Indira Gandhi Memorial Hospital (IGMH)
- The Ministry of Finance building
“These locations were all tied to the sukuk arrangement. They have now been freed,” the President said.
Payment Without Asset Sales or New Debt
Speaking at a public gathering in Rasdhoo, the President noted that the sukuk had originally been issued by the previous administration using state land as collateral.
He emphasized that the current government managed to settle the full amount through its own financial measures, without resorting to the sale of public assets or taking on new debt.
The sukuk, issued in 2021 to refinance an earlier $250 million “Sunny Side” bond, has now been fully repaid, bringing an end to the obligation.
Addressing Claims and Ongoing Efforts
President Muizzu also responded to claims questioning whether the sukuk had been settled, stating that documentation confirming the repayment is available at the Maldives Monetary Authority (MMA) and the Ministry of Finance.
He added that while these four properties have been released, other state assets remain tied to similar financial arrangements, with efforts underway to free those as well.
Broader Development Plans
The President further highlighted that development projects worth MVR 4 billion have been awarded to local companies across the atolls, with work currently in progress. He said the government aims to accelerate implementation in the coming months.
Officials say the repayment of the sukuk and release of state assets form part of a broader effort to stabilize public finances while continuing infrastructure and development initiatives nationwide.
