Ivory Coast to issue its first sukuk
The country will raise CFAF150 billion in Islamic bonds.The Ivorian government signed an agreement with the Islamic Corporation for Private Sector Development (ICD) on September 17th for the structuring of a CFAF150 billion(€225 million) sukuk.
As a lead arranger, this subsidiary of the Islamic Development Bank (IDB) will be responsible for selecting the different stakeholders, coordinating and liaising with government officials to oversee the entire process
of implementing the program.
These Islamic bonds - to be issued in November - are the first tranche of a loan that is expected to reach CFAF300 billion CFA for the period 2015-2020.
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.
This announcement comes after the country welcomed the first African Forum of Islamic finance.