Strong economic growth in the Maldives is expected to help lower the nation’s borrowing costs in future, the government said on Tuesday, after the Indian Ocean archipelago raised $200 million via a debut sovereign bond last week.
The government issued the 5-year bond with a coupon of 7 percent, with Hong Kong-based BoCom International Holdings Co Ltd acting as the sole global coordinator for the offering.
“The government thinks this is a fair coupon rate for international investors whilst remaining affordable for the Maldives. It is in fact a robust rate if we look at similar recent offerings,” a government spokesperson said in a statement emailed to Reuters.
The comments come after the main opposition party described the coupon rate on the debut offering as high and that it could force up debt costs for private-sector borrowers.
Responding, the government disputed that view.
“Inaugural offerings command a premium – given they are an untested proposition on the international market. The Maldivian economy continues to grow stronger quarter on quarter. Given this, there is no reason why the Maldives’ coupon rate will not go down on our next issuance.”
Full details are available from the link below:
Source URL: Bing News :