Benin has entered financial history after securing $500 million through its first-ever seven-year sovereign sukuk, marking the first time an African government has issued the Islamic financing instrument on the international market.
According to an official government release, the sukuk was issued on Thursday and carries a seven-year maturity. Although denominated in US dollars, the transaction benefits from a dollar-to-euro currency hedge, resulting in a euro yield of 4.92 percent.
In addition to the sukuk, Benin also expanded an existing Eurobond due in 2038, raising an extra $350 million at a 6.19 percent euro yield.
Investor appetite was exceptionally strong, with combined demand exceeding eight times the total amount offered.
The order book reportedly surged beyond $7 billion, reflecting broad international interest.
Subscriptions came from institutional investors across Europe, North America, Asia, and the Middle East, with first-time participation recorded from several Gulf-based investors.
The successful fundraising follows an investor outreach campaign launched in 2025, during which Beninese officials held presentations in Doha, Abu Dhabi, Dubai, and London.
Authorities said the proceeds from both operations are expected to meet a substantial share of the country’s funding requirements under the 2026 Finance Law.
No Comments
Join the DiscussionBe the first to join the discussion!