Benin has raised $500 million through a seven-year international sukuk, marking a significant step in the country’s efforts to diversify its external financing sources and tap into Islamic capital markets. The issuance forms part of a broader $850 million international funding operation, which also included a reopening of Benin’s 2038 Eurobond, as reported by CNBC Africa.
The sukuk was structured in line with Sharia-compliant financing principles and attracted strong investor demand, with order books reported to be multiple times oversubscribed. Officials said the transaction drew interest from a wide range of investors across the Middle East, Europe, North America and Asia, underscoring Benin’s growing profile among global emerging-market borrowers.
Authorities said the proceeds will be used for budgetary support and debt refinancing, helping to improve the country’s debt maturity profile and reduce refinancing risks. The deal also reflects Benin’s strategy to broaden its investor base beyond traditional Eurobond buyers and strengthen resilience in its public finance framework.
Analysts say the successful sukuk issuance highlights renewed confidence in Benin’s macroeconomic management and reform agenda, while reinforcing the expanding role of Islamic finance in African sovereign funding, as noted in market commentary cited by beninwebtv.
