Finally, Senegal raised FCFA200 billion ($341.5 million) from the sukuk it issued on June 20, 2016, thus 50 billion more than what it initially aimed for, the Islamic Corporation for the Development of the Private Sector (ICD) announced on Sept 28.

The sukuk’s size grew as a result of strong demand for subscription at FCFA233 billion, the same source added. According to ICD, a branch of the Islamic Development Bank (IDB), more than half of the Islamic bonds issued on the West African Economic and Monetary Union’s (WAEMU) market were subscribed by local investors and about a third of these bonds by investors from Ivory Coast and Togo.

Senegal’s sukuk offers a 6% annual profit margin, paid half-yearly over 10 years, with a 2-year grace period. Named “Sukuk Etat du Senegal 6% 2016-2026”, the bond has been certified conform to Islamic law by the Sharia committee Board of the IDB.

The bond is backed by an asset represented by the part of the terminal of the Léopold Sedar Senghor international airport that goes over 115 hectares. It comprises departure and arrival halls, offices of executive management, parking spaces, hangars and auxiliary buildings.

Senegal is the member of the WAEMU to issue a sukuk in June 2014 for FCFA100 billion. Two other member-states of the Union namely Cote d’Ivoire and Togo should also close respectively FCFA150 billion sukuks. The bonds were respectively issued in July and August 2016.