State utility provider Malé Water and Sewerage Company Private Limited (MWSC) has listed a $26 million bond on the Maldives Stock Exchange, inviting investors to participate in a $13 million tranche to support its ambitious expansion plans.
The amortized bond, listed to secure funding for development initiatives and business portfolio expansion, is being offered in two phases. Currently, $13 million worth of bonds is available for subscription via MWSC’s online portal, Viyani. Investors in the five-year bond will earn a competitive annual interest rate of 7.5%.
MWSC’s revenue composition currently relies heavily on utility services, with 55% generated from water and sewerage operations. The company plans to diversify its income streams by increasing non-utility revenue to 60% of its total portfolio, a move aimed at ensuring long-term financial stability.
Speaking about the initiative, MWSC Managing Director Abdul Matheen Mohamed highlighted the company’s ambitious plans, which include over $84 million in new projects across more than 20 islands this year. However, Matheen noted that the company requires additional resources and equipment to successfully execute these projects, emphasizing that borrowing often comes with high-interest costs.
To bolster its financial position, MWSC has implemented substantial cost-cutting measures, saving $11 million over the past three quarters. Matheen stated that these efforts are expected to double the company’s net profit this year without imposing any additional financial burden on the public.
The bond initiative is seen as a significant step in advancing MWSC’s development goals while ensuring financial sustainability, reflecting the company’s commitment to driving growth and expanding its services across the Maldives.
