Maldives Today

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Five hundred million: a plan for the Islamic bond takes shape

A refinancing of US$350 million paired with a drawdown from the Sovereign Development Fund is the shape of the arithmetic.

By Hassan Waheed

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Five hundred million: a plan for the Islamic bond takes shape

Officials at the Ministry of Finance outlined on Monday the arithmetic by which the government intends to repay a US$500 million Islamic bond falling due in April. The plan hinges on refinancing US$350 million through a new sukuk and drawing the remainder from the Sovereign Development Fund.

The ministry has not confirmed the terms of the proposed refinancing, which bankers say will price at a premium to last year's issuance. The fund's working balance, estimated at US$190 million in November, would be reduced materially by the drawdown.

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