The Republic of Benin has established itself as Africa’s first sovereign issuer in 2026, making history with its inaugural Sukuk issuance.
Benin is the first African state to issue an inaugural international Sukuk with a 7-year maturity. With a nominal value of US$500 million, the Sukuk carries a 4.92% Euro coupon, secured through a simultaneous Dollar-Euro currency hedging transaction covering the entire amount issued.
This landmark transaction marks a strategic strengthening of financial relations between Benin and the Gulf countries and aligns with its financing strategy. It demonstrates the Government’s commitment to utilising innovative financial instruments, diversifying its funding sources, and broadening its investor base. This Sukuk thus paves the way for new financing opportunities within the Islamic finance sector.
The Republic of Benin has also successfully reopened its Eurobond maturing in 2038 for an additional US$350 million. This transaction carries a Euro coupon of 6.19%, thanks to a concurrent US$-Euro currency hedging operation covering the entire amount issued.
The success of these operations is based on sustained marketing efforts, initiated in 2025, with numerous investor meetings in Doha, Abu Dhabi, Dubai, and London. This structured approach generated exceptional interest from international investors, resulting in an order book exceeding US$7 billion, representing an oversubscription of more than eight times the amount issued. Demand was broad, high-quality, and came from international investors in Europe, the United States, Asia, and the Middle East, with a significant number of new investors from the Gulf countries.
Investor interest and Benin’s ability to seize favourable market opportunities, in a context marked by high volatility, resulted in issuance yields lower than those of the Republic’s securities observed on the secondary market.
These two transactions allow the State to cover a significant portion of its financing needs outlined in the 2026 Finance Law, while optimising the structure and maturity profile of its public debt. They confirm the strength of Benin’s sovereign credit profile, its capacity for financial innovation, and its leading position among sovereign issuers in emerging markets.
