Benin has begun investor meetings in London for a multi-tranche international bond issue that could raise up to US$1 billion and include the country’s first sovereign sukuk, market sources said.
The proposed transaction would feature a seven-year Islamic bond and may also involve the reopening of two outstanding Eurobonds maturing in 2038 and 2041. If completed, it would mark the first sovereign sukuk issued by a sub-Saharan African country since South Africa’s debut deal in 2014.
Beninese officials met investors in the British capital last week to gauge appetite for the offering, which is expected to follow a 144A/Reg S format. Rating agencies currently assign Benin a B1 rating from Moody’s, BB- from S&P Global Ratings, and B+ from Fitch Ratings.
According to market participants familiar with the transaction, the potential reopening would include a US$750 million bond maturing in February 2038 with a 7.960 percent coupon, and a US$500 million bond due in January 2041 carrying an 8.375 percent coupon. The overall size of the operation could reach about $1 billion, depending on demand.
The banking syndicate is led by Citi, Emirates NBD Capital, HSBC and JPMorgan, acting as global coordinators and joint bookrunners. Arqaam Capital is serving as co-bookrunner, while Emirates NBD Capital and HSBC are structuring the sukuk.
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Authorities have been studying a sukuk issuance for several months, and the plan now appears to be benefiting from supportive market conditions. The deal is primarily aimed at diversifying Benin’s funding sources and broadening its investor base.
Fitch has described Benin’s public debt profile as solid, noting an average maturity of 9.3 years, an almost entirely fixed-rate structure, and more than half of debt on concessional terms. The agency also cited an average borrowing cost of 3.4 percent at the end of 2025 and limited exposure to interest-rate or foreign-exchange shocks, as most debt is denominated in CFA francs or euros.
The planned issuance comes after a failed coup attempt in early December, an event that market participants said did not dampen international investor appetite. On Friday, Fitch revised the outlook on Benin’s long-term foreign-currency sovereign rating to “positive” while affirming the rating at B+.
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Benin last accessed international capital markets in January 2025, raising US$500 million through a conventional amortising bond maturing in January 2041 with an 8.625percent coupon. That deal attracted investor orders of more than US$3 billion.
The global sukuk market has continued to expand, with Fitch reporting rising issuance volumes in 2025. Citi has said stronger links between sub-Saharan Africa and the Gulf could encourage more African sovereigns to tap a market still dominated by Gulf-based investors.
Several African countries are now exploring Islamic finance instruments. Nigeria secured parliamentary approval in October 2025 for a planned $500 million international sovereign sukuk, which would be its first global issuance, while Senegal has announced plans to issue a benchmark international sukuk in 2026.
