Allied Insurance Company has bought Mrf. 10 million worth short term 01 (one) year corporate bonds with an interest rate of 7 (seven) percent from Maldives Tourism Development Corporation Plc.
A signing ceremony was held at Allied Insurance Company’s Corporate Office on 25th May 2011. Managing Director, Mr.Abdul Wahid Thowfeeq signed on behalf of Allied Insurance Company and Mr.Mohamed Mihad, Managing Director/CEO of MTDC Plc signed on behalf of Maldives Tourism Development Corporation Plc.
Answering questions of the reporters Mr.Mohamed Mihad said that these bonds are sold to Allied Insurance Company under a special agreement and would not be sold to the public.
The purpose of Allied Insurance Company to enter into a commercial agreement like this is to diversify the company’s investments in the capital market for a profitable return. Previously, the company invests its funds in Maldives Monetary Authority’s Treasury Bills. Similar new investment opportunities will be healthy to company’s net balance and enable the company to give a better investment return to the life insurance policyholders.
Although this is the first time the company is purchased corporate bonds, the company has planned to invest in such business ventures in the future.