Benin Issues Africa’s First $500 Million International Sukuk

Benin has achieved a historic milestone by issuing Africa’s first international sukuk valued at $500 million. This groundbreaking initiative was officially announced in a press release on January 22, 2026. The sukuk has a seven-year maturity and carries a coupon rate of 4.92% in euros, supported by a comprehensive dollar-euro currency hedge.

Significance of Benin’s Sukuk Issue

This sukuk represents a strategic enhancement of financial ties between Benin and Gulf nations. It aligns with the government’s efforts to diversify funding sources and broaden its investor base. The issuance also highlights Benin’s commitment to innovative financial instruments, aiming to attract new financing avenues within Islamic finance.

Successful Reopening of Eurobond

In addition to the sukuk, Benin successfully reopened its Eurobond, maturing in 2038, with an additional $350 million. This Eurobond features a coupon rate of 6.19%, also supported by a dollar-euro currency hedge.

Investor Engagement and Market Response

The success of these financial operations can be attributed to intensive marketing efforts initiated in 2025. These included multiple investor meetings held in cities such as Doha, Abu Dhabi, Dubai, and London.

• The marketing campaign generated exceptional interest from international investors.
• Investor orders reached over $7 billion, indicating an oversubscription of more than eight times the amount issued.

Investors from various regions—including Europe, the United States, Asia, and the Middle East—expressed significant interest, particularly from Gulf nations. This robust demand, paired with Benin’s timely entry into the market amidst prevailing volatility, enabled the country to secure bond yields lower than the existing market levels for similar sovereign bonds.

Financial Implications and Future Outlook

These financial operations significantly address a major portion of Benin’s funding requirements outlined in the 2026 Finance Law. They also optimize the structure and maturity profile of the public debt.

Ultimately, these developments reaffirm the strength of Benin’s sovereign credit profile and its capacity for financial innovation, establishing the country as a key player among emerging market sovereign issuers.