Benin makes financial history West African by launching its very first sukuk on the markets international on January 22, 2026. It is a financing transaction international with a total amount of 850 million dollars, structured around of two bond issues.

The inaugural issue of the Sovereign Sukuk of Benin constitutes a historic first operation for an African state, which testifies of the country's growing attractiveness to international investors and of its financing diversification strategy. This operation is complemented by a reopening of the Eurobond expiring in 2038, for an amount of 350 million dollars.

The Sukuk was issued with a 4.92% coupon, denominated in euros, thanks to a system of full coverage of the risk of exchange between the dollar and the euro. This mechanism makes it possible to stabilize the cost of debt service and to limit fiscal exposure to fluctuations in change. The reopening of Eurobond 2038 was carried out on the same basis, with a coupon of 6.19% in euros. According to the authorities, the conditions obtained are more favourable than those observed on the secondary market, in a context international marked by persistent interest rate volatility.

Investor demand has greatly exceeded amounts sought. Order books reached more than 7 billion dollars, which is a level of oversubscription greater than eight times the offer total. This mobilization involved a diversified investor base, including funds specialized in Islamic finance, mainly in the Middle East, as well as asset managers in Europe, North America North and in Asia. The entry of investors from the Gulf, attracted by compliance Sharia law of Sukuk, constitutes a significant expansion of the profile of creditors of Benin.

This operation is part of a strategy of preparation initiated beforehand. Since 2025, the Beninese authorities have increased the number of meetings with international investors, in particular at Doha, Abu Dhabi, Dubai and London. These exchanges focused on the trajectory the country's macroeconomic system, the fiscal reforms implemented and the will to diversify external financing instruments.

Resources raised will be allocated first to the financing of the 2026 budget, to the refinancing of existing deadlines and to improving the overall profile of public debt. The stated objective is to extend the average maturity of debt, to reduce its cost and to limit currency risks, rather than increasing the overall debt level.

The operation takes place a few weeks after the failure of a coup attempt in early December in Benin, an episode that did not, according to market players, call into question the interest of international investors. Moreover, the Fitch Ratings agency has raised on Friday the outlook associated with the long-term sovereign rating of Benin in foreign currencies at “positive”, while confirming the B+ rating.