Senegal has launched subscriptions for its second sovereign Sukuk issuance. The proposed 150 billion CFA francs deal is being offered at 6% profit rate with a 10-year maturity. The Islamic Corporation for the Development of the Private Sector (ICD), a multilateral organization affiliated with the Islamic Development Bank (IDB) Group is acting as the arranger for the sukuk.
The proposed deal is backed by the assets of the international airport.
Senegal last issued a sukuk on 25 June 2014 for 100 billion CFA francs. The four-year issuance achieved a profit rate of 6.25% and was the first major sukuk issued by a West African nation. Ivory Coast later issued a five year 150 billion CFA francs on 28 December 2015.
A major significance of the Sukuk programme for both Senegal and Ivory Coast is the issuance in a local currency as opposed to in a hard international currency.
The West African CFA franc is the currency of eight independent states in West Africa who combined have a population of 105.7 million people (2014) and a combined GDP of US$78.4 billion (2012).