A government bond has been listed in the Maldives Stock Exchange for the first time in the country's history.
The government issued an MVR 50 million treasury bond to be listed in the stock exchange last Monday.
The step was taken in accordance with objectives stated in the government's medium-term debt management strategy, the Finance Ministry said. The inaugural listing would pave the way for businesses and the public to buy and sell government securities in the secondary market, it added.
A special ceremony was held at the Finance Ministry on Thursday to mark the historic occasion. Representatives from the Maldives Stock Exchange, Capital Market Development Authority and Pension Administration Office took part in the event.
Speaking at the ceremony, Finance Minister Dr. Mohamed Shafeeq said the listing was a historic move towards developing the domestic securities market, as a result of which developmental goals would be achieved, and a liquid and active secondary market could be enabled in the Maldives.
The treasury bond was issued by the ministry at a 5.5 percent annual coupon rate. The maturity period was set for December 2028 with a total of 50,000 bonds listed at the stock exchange at a rate of MVR 1,000 per bond.
Listing long-term treasury bonds in the stock exchange and facilitating trading in the secondary market are important steps taken by the government to further expand and develop the country's financial market, the Finance Ministry said.
The government plans to list short-term and long-term securities in the future, according to the ministry, which assured continuous efforts to develop the internal market.
