Senegal issues its first sukuk

Jun 30, 2014

Senegal launched on Wednesday (25 June) a Cfaf100 billion (€152.5 million) sukuk program, the Ministry of Finance said in a statement.

Senegal launched on Wednesday (25 June) a Cfaf100 billion (€152.5 million) sukuk program, the Ministry of Finance said in a statement.


This is the first major Islamic bond by a West African nation.


"This project is important for the government, given its commitment to turn Senegal into a leading platform for the development of Islamic finance in sub-Saharan Africa, particularly in the West African Monetary Union (WAMU)," Minister Delegate for the Budget Mouhamadou Makhtar Cisse
said in Dakar, quoted by APS news agency.

The sukuk "State of Senegal 6.25 percent 2014 to 2018" is a collective debt investment fund (Fonds commun de titrisation de créances - FCTC) being created at the joint initiative of the company BOAD
titrisation
and the Islamic Bank of Senegal (BIS) .


"It was necessary to put in place a structure capable of reconciling the laws and regulations with the requirements of Islamic finance. The state of Senegal guarantees the repayment of the sukuk," added the Minister.