Senegal is renewing plans to issue its first Islamic bond through a US$200 million sukuk programme that would be launched in 2014, Reuters has reported.
The Senegalese government, in cooperation with the Jeddah-based ICD would sell the sukuk. The launch of the sovereign sukuk from Senegal would be an important step in developing Islamic finance in sub-Saharan Africa.
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Khaled Al-Aboodi, CEO and general manager of the Islamic Corporation for the Development (ICD) of the Private Sector exchanges the sukuk agreement with Amadou Ba, Senegal’s minister of economy and finance, in Washington.
"This project is the beginning of an ambitious programme which could lead to the financing of innovative infrastructure and energy projects through sukuk issuances," said Finance Minister Amadou Ba.
Governments in several countries are considering sukuk issues as a way to attract cash-rich Islamic funds from the Gulf and Southeast Asia.
Khaled Al-Aboodi, chief executive of the ICD, said the Senegalese sukuk would be the first of a series of regional programmes that would be offered to West African states.
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By GlobalDataAboodi added the Central Bank of West African States has accepted that the Senegalese sukuk could be used in its repurchase operations.
Citigroup would help to arrange the Senegalese issue, which the country has been studying since 2011.
