MACL put up runway as security for US$56m BML loans

Maldives Airports Company Limited (MACL), the state company that runs the country's airports, took US$56 million in four new loans from Bank of Maldives (BML) in 2025. It used its lease rights over Hulhulé and over the Velana International Airport runway as security.

The loans are listed in the Auditor General's audit of MACL's 2025 accounts, report FIN-2026-168(E), dated 2 November 2026. Adhadhu reported on the loans on Sunday.

The four loans

• 8 May 2025: US$30 million at 8 percent a year over 60 months, secured on MACL's lease rights over Hulhulé Island
• 17 August 2025: US$10 million at 6 percent
• 22 October 2025: US$10 million at 6 percent
• 23 November 2025: US$6 million at 8 percent

The last three loans are secured on MACL's lease rights over the runway, taxiway and apron area, under a lease with the government signed on 1 February 2025. The government owns the land and MACL leases it. The security must cover at least 200 percent of each loan.

MACL also took an MVR 400 million demand loan from BML in March 2025, and a dollar working-capital loan from Maldives Islamic Bank in June 2025.

Debt and cash

MACL group borrowings rose to MVR 16.64 billion at the end of 2025, from MVR 13.42 billion a year earlier. Most of this is foreign project loans on-lent by the government, including US$373.8 million from China Exim Bank for the runway, fuel farm and cargo work.

Cash and bank balances fell to MVR 493 million, from MVR 937 million. Current liabilities exceeded current assets by MVR 4.86 billion, mainly because of project loans falling due.

The auditor did not report any material uncertainty about MACL's ability to keep operating. Management said the company generated MVR 3.11 billion in operating cash flow before working capital, and that the government is its sole owner and main lender.

MACL's revenue rose to MVR 9.33 billion in 2025, and profit after tax rose 34 percent to MVR 1.46 billion.