Ivory Coast raises €229m with first sukuk

Jan 18, 2016

The government has fulfilled its objectives.

Ivory Coast has just raised 150 billion CFA francs (€229 million) on the regional market of the West African Economic and Monetary Union (WAEMU) thanks to the issuance of its first sukuk.

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.

The government has been borrowing on international markets for two years to boost its growing economy. It now wants to use alternative methods of financing to facilitate the execution of development projects.

This is the first tranche of a loan that is expected to reach 300 billion CFA francs for the 2015-2020 period.

By issuing this sukuk, Ivorian authorities are opting for the "diversification of fundraising tools to mobilise resources destined to finance its investment needs," the central bank said in a statement.

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) was
responsible for selecting the different stakeholders, coordinating and liaising with government officials to oversee the entire process of implementing the program.ADNFCR-2976-ID-801810219-ADNFCR