BML to issue dollar sukuk to international market for the first time
Bank of Maldives (BML) is preparing to enter the international financial markets for the first time, currently holding discussions with investors across Asia and Europe. This strategic move aims to secure the foreign currency required by Maldivian businesses amidst global market shifts and to ensure national economic stability. As the country’s leading financial institution, BML’s initiative represents a significant step toward addressing current liquidity challenges and strengthening the domestic banking system.
Bank of Maldives CEO and Managing Director Mohamed Shareef addressing the bank's Annual General Meeting. | Bank of Maldives
Bank of Maldives (BML), the nation’s largest financial institution, is set to issue its first-ever US Dollar Sukuk (Islamic bond) in an effort to improve liquidity and address the ongoing dollar shortage facing local businesses.
Bloomberg reports that Bank of Maldives (BML) has decided to take this measure to help safeguard the Maldivian economy from the adverse impacts on regional trade caused by ongoing wars and instability in the Middle East.
This marks Bank of Maldives' (BML) first entry into the international capital market. To gauge investor interest in the sukuk, the bank is currently holding meetings with investors across Asia, the Middle East, and Europe.
Bank of Maldives (BML) accounts for approximately 50 percent of the total assets and deposits within the Maldivian banking system, playing a pivotal role in the nation's economy. The primary objective of securing US dollars from the international market is to provide the foreign currency essential for local merchants to open Letters of Credit (LCs) for imports, thereby ensuring that business operations remain uninterrupted during this critical period.
Financial experts view this decision by BML as a crucial and robust step toward ensuring financial stability, particularly at a time when global political tensions and armed conflicts threaten to impact tourist arrivals and foreign currency inflows to the Maldives.
