Bank of Maldives (BML) has commenced meetings with international investors to raise funds through a sukuk issuance on the global financial market, aimed at mitigating the adverse impacts on the Maldivian tourism industry caused by the Iran conflict.
According to a report by Bloomberg, BML’s Director for Financial Strategy and Planning, Abdulla Hassan, stated that the bank is currently engaging with fund managers across Asia, the Middle East, and Europe to gather feedback on the proposed dollar-denominated sukuk.
BML is seeking to raise USD 300 million through the sovereign-guaranteed sukuk. Dubai-based Mashreq Bank is facilitating the investor meetings.
This marks the first time the national bank has entered the international financial market.
Abdulla Hassan noted that while this funding is not directly linked to current challenges, it will increase the circulation of foreign currency within the Maldivian economy.
"The entire economy will benefit from this liquidity. This is an indirect solution to these issues," Abdulla Hassan said.
The move to issue a sukuk comes as BML reports a one-third decline in dollar inflows via cards due to the Iran conflict. Consequently, the bank has begun implementing measures to reduce foreign currency outflows.
These measures include imposing controls on providing dollars for business telegraphic transfers (TTs) and setting daily limits for certain e-commerce platforms.
The public has expressed concerns regarding difficulties in conducting card transactions due to these restrictions. However, the bank maintained that these issues are limited only to the specific sites where restrictions have been applied.
