Africa-Press. The Republic of Benin has become the first African country to enter the international sovereign sukuk market after raising 500 million USD in an inaugural seven-year issuance, according to an official government statement. The move marks a significant milestone for African financing, opening the door for other countries on the continent to explore Islamic finance instruments as an alternative to traditional bonds.
The new issuance carries an annual euro-denominated yield of 4.92%, supported by a mechanism hedging exchange rate fluctuations between the dollar and the euro. In addition, Benin reopened its 2038 international eurobond, adding 350 million USD at a euro coupon rate of 6.19%. Both offerings drew exceptional interest from investors, with demand exceeding eight times the issued amount and order books surpassing 7 billion USD.
Demand for the sukuk came from investors in Europe, the United States, Asia, and the Middle East, with notable participation from new Gulf-based investors. This interest reflects growing confidence in Benin’s economy and highlights the expanding role of Islamic finance instruments in global markets as safe and diversified investment options.
Background and strategy
The issuance follows a 2025 investor roadshow conducted by Beninese authorities, including meetings in Doha, Abu Dhabi, Dubai, and London. According to the government statement, the operation aims to cover a significant portion of the financing needs outlined in the 2026 Finance Law, reflecting a clear strategy to diversify funding sources and broaden the international investor base.
Benin’s entry into the international sukuk market sets an African precedent that may encourage other countries to adopt this form of financing, particularly amid the economic challenges facing the continent. The issuance also reflects investor confidence in Benin’s ability to meet its financial obligations and showcases the variety of instruments governments are increasingly using to meet their financing needs, ranging from traditional bonds to Islamic sukuk.
