(Corrects sum of total sukuk orders in fifth paragraph to 233
billion CFA francs)
By Bernardo Vizcaino
Sept 29 Senegal has upsized its second sale of
sovereign sukuk, with Ivory Coast and Togo expected to close
their own deals in coming days, as Islamic finance gains
traction as an alternative funding option for African
Despite strong growth in the Middle East and Southeast Asia,
Islamic finance has lagged in Africa although it could be an
important growth driver for the industry as it is home to a
quarter of the world's Muslims.
Senegal issued a debut sukuk in 2014 and returned to the
market in July with a 10-year deal paying a 6 percent profit
rate backed by assets from Dakar's international airport.
Investor demand prompted the issuer to seek regulatory
approval to expand the size of the deal, according to the
Saudi-based Islamic Corporation for the Development of the
Private Sector (ICD) which helped arrange the sukuk.
Senegal's sukuk raised a total of 200 billion CFA francs
($341.5 million) from an initial plan for 150 billion CFA
francs, the ICD said. It attracted total orders of 233 billion
More than half of the Senegal sukuk was sold to local
investors, with a third taken up by investors from the Ivory
Coast and Togo, which are next in line to tap the market.
The two governments aim to finalize their sukuk deals by
early next month, which the ICD is also arranging.
Ivory Coast is completing a sale of 150 billion CFA franc
worth of 7-year sukuk, the second phase of a 300 billion CFA
franc sukuk programme set up last year.
Togo aims to raise 150 billion CFA francs from its debut
sukuk, which has a 10-year maturity and 6.5 percent yield.
Niger has also signed up for a sukuk programme to raise 150
billion CFA francs in two phases, although a timing has yet to
The CFA franc is issued by the central bank of the 8-nation
West African Economic and Monetary Union.
($1 = 585.6200 CFA francs)
(Reporting by Bernardo Vizcaino; Editing by Eric Meijer)