Maldives lists $100m bond in Abu Dhabi

Abu Dhabi Securities Exchange (ADX) has announced the listing of a $100m sovereign bond issued via an Abu Dhabi Fund for Development (ADFD) private placement for the government of the Maldives.

The bond, listed by the Maldives Ministry of Finance and Treasury, has a five-year maturity and coupon rate of 5.5 per cent, according to an announcement by ADX.

Fitch has rated the bonds B+. First Abu Dhabi Bank acted as the arranger and lead manager of the transaction.

ADX said it was the first sovereign bond to have a primary listing on a UAE and Gulf stock market.

“This issuance strengthens the Government of Maldives’ strategy and its ability to find the necessary funding as it prepares to expand its expenditure on development projects and accelerate the economic and social development of the country,” said Maldives ambassador to the UAE Hussain Niyaz.

The listing comes after the Maldives announced plans to sell sovereign bonds in 2016 to support infrastructure development.

Thursday’s listing will be used to fund “ongoing and proposed projects and programmes for the year”.

The bond marks the second issuance by the Maldives on international capital markets after a $200m debut on the Singapore Stock Exchange in May 2017 coordinated by Hong Kong-based BoCom International Holdings Co Ltd.

That issuance had a coupon rate of 7 per cent per annum.

ADFD provided the Maldives with $50m of financing last year to develop a new terminal at Velana International Airport and has given the country $550m to date.