Ivory Coast returns to sovereign sukuk market, after Togo debut

Ivory Coast plans to complete a sale of 150 billion CFA francs ($263 million) worth of Islamic bonds later this month, the transaction's lead arranger said on Tuesday, following Togo's debut sale of sovereign sukuk launched last month.

The two West African nations join Senegal in tapping the market for sukuk, helping expand the use of Islamic financing options outside of the industry's core centres in the Middle East and Southeast Asia. 

The Ivory Coast will sell the 7-year sukuk using a lease-based contract known as ijara, with the subscription period closing on Aug. 31, according to the Saudi-based Islamic Corporation for the Development of the Private Sector (ICD). 

This would represent the second phase of a 300 billion CFA franc sukuk programme set up last year by the world's top cocoa producer and French-speaking West Africa's economic powerhouse. Togo plans to complete the sale of its sukuk later this week, aiming to raise 150 billion CFA franc with a 10-year maturity and a 6.5 percent yield. 

The ICD is the lead arranger for both the Togo and Ivory Coast sukuk. These back-to-back deals could boost the ICD's efforts to expand its activities across Africa, where the development of Islamic finance has lagged despite being home to a quarter of the world's Muslims. Nigeria and Kenya are also planning to issue sovereign sukuk of their own, in part to help fund large infrastructure needs, although the timing for such deals has yet to be determined.

(Standard Digital / 09 August 2016)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

After Ivory Coast sukuk, West Africa bloc signs SME fund deal

Jan 25 The central bank of West Africa's CFA-franc zone has signed an agreement with the private sector arm of the Islamic Development Bank to help finance small and medium-sized businesses through a $100 million Islamic fund.

The deal follows a debut 150 billion CFA francs ($247.5 million) Islamic bond issued by the Ivory Coast last month, the second such transaction in the eight-nation Economic and Monetary Union of West Africa (UEMOA).

The Jeddah-based Islamic Corporation for the Development of the Private Sector (ICD) will commit an intial $30 million for the SME fund and would help seek additional investors to increase its size to $100 million, a joint statement said.

UEMOA comprises Benin, Burkina Faso, Ivory Coast, Mali, Guinea-Bissau, Senegal, Niger and Togo. They share a regional central bank and the CFA franc currency, which is pegged to the euro.

Despite strong growth in the Middle East and Southeast Asia, Islamic finance has lagged in Africa, home to a quarter of the world's Muslims, presenting an opportunity for ICD which is exanding its activities across the region.

The Ivory Coast's sukuk, which was arranged by the ICD, saw a 38 percent allocation to investors from the Middle East region. In 2014, Senegal issued the region's first Islamic bond, a 100 billion CFA franc deal.

Niger has also signed up for a sukuk programme worth 150 billion CFA francs, although a timing has yet to be determined.

The central bank also committed to support SMEs by providing incentives to credit institutions, as well as developing complementary leasing and venture capital instruments. 

(Reuters / 24 January 2016)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Ivory Coast successfully issues largest West African sovereign sukuk

The Republic of Côte d’Ivoire, acting through the Ministry of Economy and Finance has closed an inaugural local currency, CFA 150 Billion (USD 244 million) Sukuk al-Ijara (“Sukuk”). The Islamic Corporation for the Development of the Private Sector (“ICD”), an arm of the Jeddah-based Islamic Development Bank, acted as the Lead Arranger. The sukuk with…

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(Business Day / 18 January 2016)

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Ivory Coast offers inaugural CFA 150 billion Sukuk

The Sukuk is an amortising Sukuk al-Ijara and is targeted at local banks and institutional investors. It mirrors the successful Senegal Sukuk that Hogan Lovells advised on in 2014.

Imran Mufti, Partner commented, "We were very pleased to work with the ICD team on this debut issuance for the Government of Côte d’Ivoire. Islamic financing is gaining pace in Africa and we expect to see more sukuk from African issuers in the near future."

Zaky Sow, Sukuk Project Manager for ICD added, "We are delighted to have brought this ground-breaking Sukuk to the market and to also introduce Islamic finance to Cote D'Ivoire. The Sukuk opens up a whole new stream of investment into the country, which will ultimately benefit the people. Having worked with Hogan Lovells' team on the Senegal Sukuk, we were confident that they would be able to provide us with a high quality service and expert advice combined with a deep understanding of the market."

Rahail Ali, Global Head of Islamic Finance commented, "There are tremendous possibilities for Sukuk in Africa, especially given the huge capital development anticipated in the continent."

Hogan Lovells' team was led by Global Head of Islamic Finance, Rahail Ali and Partner Imran Mufti. They were assisted by Partner Baptiste Gelpi, International Debt Capital Markets, Paris and Lina Bugaighis, Dubai.

(C P I Financial / 11 January 2016)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com