State utility company, Male' Water and Sewerage Company Private Limited (MWSC) has listed a USD 26 million bond on the Maldives Stock Exchange and invited interested parties to invest in USD 13 million worth of bonds.
MWSC has listed the amortized bond on the Maldives Stock Exchange to raise funds for development projects and expansion of the company's business portfolio. The bond subscription has been listed in two tranches, with half of the total bond amount now open for investors through MWSC’s online portal Viyani. Subscribers will receive 7.5 percent interest for the five-year duration of the amortised bond.
The company’s revenue portfolio accounts for 55 percent from water and sewerage services, while the rest is generated as non-utility revenue. However, MWSC is aiming to boost its non-utility revenue by expanding the company’s business portfolio to 60 percent of total revenue in order to ensure financial sustainability.
MWSC has secured new projects worth USD 84 million spanning more than 20 islands this year, according to Managing Director Abdul Matheen Mohamed. However, Matheen said the company requires additional resources and equipment to carry out these projects, adding that financing is usually available at very high interest rates.
MWSC has implemented major cost-cutting measures to save USD 11 million between the three quarters of last year and this year as part of its efforts to improve its financial capacity, he said. Such efforts, according to Matheen, will boost the company’s net profit by 100 percent this year without any added financial burden for the people.