The Government of Maldives has appointed US-based investment banking firm Centerview Partners to provide advisory services on the country’s debt challenges.

According to a Reuters report, the Maldives signed an agreement with Centerview to address its financial difficulties. The news outlet cited two anonymous sources familiar with the matter. Reuters also noted that the Maldivian government did not immediately respond to requests for comment, and senior spokesperson Hina Waleed was unavailable for a response, as calls and messages went unanswered.

Founded in 2006 by senior investment bankers, Centerview Partners is expanding its sovereign advisory business globally. With offices in New York, London, Paris, Chicago, and Los Angeles, the firm has advised on major business deals, including AstraZeneca’s USD 39 billion acquisition of Alexion Pharmaceuticals.

The appointment of a US-based firm to advise on the Maldives' debt comes amid growing concerns about the potential default on USD 500 million in sukuk (Islamic bonds). If this occurs, the Maldives would become the first country to default on a sukuk.