MACL pledges runway lease rights to secure BML dollar loans, audit shows

Maldives Airports Company Limited (MACL) mortgaged lease rights over the runway area to secure three of four Bank of Maldives (BML) dollar loans taken in 2025, the Auditor General's audit shows.

The four loans totalled USD 56 million. The findings appear in the Auditor General's report on MACL's 2025 accounts, No. FIN-2026-168(E), dated 2 November 2026 and available on the Auditor General's Office website. The auditor issued an unqualified opinion, finding that the accounts present a true and fair view under IFRS.

Breakdown of the BML loans

• 8 May 2025: USD 30 million at 8% a year over 60 months, with USD 29.74 million outstanding; secured on MACL's lease rights over Hulhulé Island under a lease dated 22 June 2020
• 17 August 2025: USD 10 million at 6%, with USD 9.15 million outstanding
• 22 October 2025: USD 10 million at 6%, with USD 9.42 million outstanding
• 23 November 2025: USD 6 million at 8%, with USD 5.94 million outstanding

Security for the last three loans is MACL's lease rights over the "Runway, Taxiway & Aprons Area", held under a lease with the government (Finance Ministry) dated 1 February 2025. The land belongs to the government and is leased to MACL. Each loan must be covered by security worth at least 200% of its value.

Other borrowing in 2025

MACL also took an MVR 400 million demand loan from BML on 19 March 2025 at 8%, of which MVR 357.8 million remains outstanding. On 16 June 2025 it obtained a USD Musharakah working capital loan from Maldives Islamic Bank at 8%, with the equivalent of MVR 229.3 million outstanding.

Borrowings rise as cash falls

• Group borrowings stood at MVR 16.64 billion on 31 December 2025, against MVR 13.42 billion in 2024
• Cash and bank balances were MVR 493 million, down from MVR 937 million in 2024
• The current portion of debt was MVR 4.75 billion, compared with MVR 3.02 billion in 2024

Most of the project debt consists of foreign loans on-lent by the government, among them USD 373.8 million from China Exim Bank for the runway, fuel farm and cargo works.

Going concern

At group level, current liabilities of MVR 8.84 billion outweighed current assets of MVR 3.97 billion, leaving net current liabilities of MVR 4.86 billion, largely because of current maturities on that project financing. Management maintains that the going concern basis is still appropriate, pointing to operating cash flow before working capital of MVR 3.11 billion, the government's position as sole owner and main lender, and equity of MVR 11.2 billion. The auditor did not report any material uncertainty.

Profit up 34%

Group revenue increased to MVR 9.33 billion in 2025 from MVR 8.51 billion in 2024. Profit after tax climbed 34% to MVR 1.46 billion, compared with MVR 1.10 billion.

Reclamation work taken over

On 7 October 2025, MACL, HDC and Capital Marine and Civil Construction signed a Deed of Novation under which MACL, through its subsidiary MIID, assumed the remaining reclamation at Hulhumalé Phase 3, Thilafushi and Giraavaru falhu. HDC pays for the work in land plots and development rights.