ADK Hospital has successfully closed the first tranche of its debut corporate bond, reaching full subscription—a historic first in the Maldives’ capital market.
The MVR 50 million tranche, part of a broader MVR 120 million bond programme placed for subscription on April 15, attracted strong interest from the investment community, signalling robust confidence in the hospital’s financial outlook and long-term growth.
This rapid and full subscription marks a milestone for the Maldivian capital market, representing one of the fastest bond issuance closures on record.
The conventional bond offers a fixed annual coupon of 8% and will mature in five years. The funds raised through this successful issuance are earmarked for a 15-story expansion of the existing ADK Hospital facility. This significant infrastructure project aims to address the growing healthcare demands in the Maldives, driven by increasing urbanisation and population growth. By enhancing its capacity and services, ADK Hospital intends to reduce the reliance on overseas medical treatment for Maldivian citizens.
This strategic development reassures ADK Hospital’s long-standing commitment to improving access to high-quality, patient-focused healthcare. Building on a strong history of clinical advancements and continuous investment in its facilities and services, the bond issuance marks a crucial step in the hospital’s growth trajectory.
Speaking on this achievement, ADK Hospital’s Managing Director, Ahmed Afaal, stated, “This successful closing highlights the investment community’s valued partnership and belief in ADK’s journey to transform healthcare services in the Maldives.”
The overwhelming response to ADK Hospital’s initial bond demonstrates the growing strength of the Maldivian Capital Market and the increasing appetite for diverse, locally offered investment opportunities. The successful debut not only reflects investor confidence in ADK Hospital but also signals a promising future for corporate bond issuances in the Maldives, laying a strong foundation for the broader development of the financial sector.
CEO Hassan Ziyath highlighted the significance of this development for institutional investors in the capital market, stating, ‘The successful initial tranche from ADK demonstrates considerable potential within our investor community. This achievement also strengthens our resolve to develop financial instruments that effectively align the needs of both issuers and investors.’
Looking ahead, the second tranche of the bond is expected to open soon.
