Ivory Coast to issue first sukuk by December 21st
The country plans to raise €225 million on financial markets.Ivory Coast will issue a CFAF150 billion sukuk (€225 million) on the regional market of the West African Economic and Monetary Union (WAEMU) from November 20th to December 21st.
Joseph N'grouma Tano, principal administrator for financial services in the prime minister's office, told Reuters that these Islamic bonds have a maturity of five years.
This is the first tranche of a loan that is expected to reach CFAF300 billion CFA for the 2015-2020 period.
The government wants to diversify its sources of funding to facilitate the execution of development projects.
"The sukuk program is in line with the objective of the Republic of Ivory Coast, which is to identify alternative methods of financing for development projects whose implementation would facilitate the achievement of the objectives of the economic emergence by 2020," said Ivorian Minister of Economy and Finance, Nialé Kaba.
The country had signed an agreement with the Islamic Corporation for Private Sector Development (ICD) on September 17th for the structuring of the sukuk.
As a lead arranger, this subsidiary of the Islamic Development Bank (IDB) is responsible for selecting the different stakeholders, coordinating and liaising with government officials to oversee the entire process of implementing the program.