MACL borrowed USD 56 million from BML, mortgaging airport lease rights, audit finds

Maldives Airports Company Limited (MACL) has pledged its lease rights over the airport's runway, taxiway and apron area as collateral for Bank of Maldives (BML) dollar loans, according to the Auditor General's report on the company's 2025 accounts. Three of the four BML loans MACL took in 2025, which together came to USD 56 million, are secured this way.

Report No. FIN-2026-168(E), dated 2 November 2026, is available on the website of the Auditor General's Office. In an unqualified opinion, the auditor concluded that, under IFRS, the financial statements show a true and fair view.

How the loans are secured

• Largest loan: USD 30 million at 8% a year, repayable over 60 months, taken on 8 May 2025. Balance still owed: USD 29.74 million. Collateral: MACL's rights under its 22 June 2020 lease of Hulhulé Island.
• Two loans at 6%: USD 10 million each, taken on 17 August 2025 (balance USD 9.15 million) and 22 October 2025 (balance USD 9.42 million)
• Latest loan: USD 6 million at 8%, taken on 23 November 2025, with a balance of USD 5.94 million

The three later loans rest on a different lease, dated 1 February 2025 and signed with the government (Finance Ministry), whose subject is the area described as "Runway, Taxiway & Aprons Area". The land is government-owned and leased to MACL. Security for each loan must equal at least 200% of its value.

On 19 March 2025, BML also lent MACL MVR 400 million as a demand loan at 8%; MVR 357.8 million of it is outstanding. In addition, MACL obtained working capital finance from Maldives Islamic Bank on 16 June 2025 in the form of a USD Musharakah loan, likewise at 8%, of which the equivalent of MVR 229.3 million is outstanding.

Debt rising, cash falling

• MVR 16.64 billion in group borrowings at 31 December 2025, against MVR 13.42 billion a year earlier
• MVR 4.75 billion as the current portion of that debt, against MVR 3.02 billion in 2024
• MVR 493 million held in cash and bank balances, down from MVR 937 million in 2024

Most of the project borrowing consists of overseas credit that the government passed on to MACL. Among them are USD 373.8 million borrowed from China Exim Bank to finance work on the runway, the fuel farm and cargo works.

At group level, current liabilities stood at MVR 8.84 billion while current assets totalled MVR 3.97 billion. The resulting net current liability position of MVR 4.86 billion arises largely from current maturities on the project financing.

Management argues that preparing the accounts on a going concern basis is still appropriate. It points to cash flow from operations before working capital of MVR 3.11 billion, equity of MVR 11.2 billion, and the government's dual role as sole owner and main lender. The auditor raised no material uncertainty.

Earnings and new reclamation work

Profit after tax rose 34% to MVR 1.46 billion in 2025, from MVR 1.10 billion, on group revenue of MVR 9.33 billion, up from MVR 8.51 billion in 2024.

MACL has also taken on unfinished reclamation. Under a Deed of Novation signed on 7 October 2025 by Capital Marine and Civil Construction, HDC and MACL, the airport company, through its subsidiary MIID, assumed the reclamation still outstanding at Thilafushi, Giraavaru falhu and Hulhumalé Phase 3. HDC is compensating MACL with development rights and plots of land.