Sudan to issue a $1 bln Sukuk in 2018
The Sudanese government recently announced it would issue sukuk bonds worth $1 billion. The amount raised from the issuance of these international Islamic bonds will be used to fund the State budget.
The operation marks a noticeable return on the international financial market after two decades of US sanctions. “In Sudan we started already with local sukuk but it will be the first time that we issue sukuk in the international market,” Mohamed Othman Rukabi, the Finance Minister told Reuters.
This announcement comes few months after the country’s parliament adopted the 2018 budget with a projected 2.4% deficit of GDP. During this year, economic growth is expected to stand at between 3.25% (forecast from IMF) and 4% (forecast from government).
Meanwhile, the government plans to drop inflation to 19.5% from 34.1% in 2017. Let’s note that although the Sudanese government followed a number of IMF’s suggestions such as subsidy cuts for energy and wheat (which prompted protests from population), it will no longer let the pound (local currency) float. Let’s also recall that the Sudanese economy has been struggling since 2011 after the separation from the southern part, which has three-quarters of the country's oil reserves.
Source: Ecofin Agency