The State of Senegal will proceed on January 26, 2025 with the payment of the half-yearly margin and the partial repayment of its Islamic bond loan called “SUKUK State of Senegal 6% 2016-2026” for an amount of 11.810 billion FCFA (18.897 million dollars) .
The amount that will be paid includes 10.514 billion FCFA ($16.822 million) representing the partial repayment of the loan and 1.296 billion FCFA ($2.074 million) for the benefit of investors.
The State of Senegal launched on June 20, 2016 on the financial market of the West African Monetary Union (UMOA), and for the second time, a Sukuk or Islamic bond for an amount of 150 billion FCFA. Instead of the classic interest rate prohibited by Sharia or Islamic law, the issuer had set a profit margin of 6% to be paid to subscribers. The Islamic loan was spread over a period of 10 years, covering the period 2016 – 2026.
The operation was structured around a common debt securitization fund (FCTC) which had issued 15 million shares (Sukuk) with a nominal value of 10,000 FCFA per unit for investors and received in return liquidity for a total amount of 150 billion FCFA.
The Fund used the proceeds of the issue to purchase the usufruct of the Sukuk Assets which were leased in Senegal, in return for a profit margin of 6% per year.
The Sukuk Asset consisted of the usufruct of part of the terminal of the former Léopold Sédar Senghor International Airport (currently transformed into a military airport by the Senegalese government authorities) which is made up of a land base of 115 hectares . The Sukuk Asset contains the departure and arrival halls, the General Management buildings, the car parks, the hangars and the ancillary buildings.
The FCTC Auditor had estimated the value of the Sukuk Asset at 250 billion FCFA ($425 million). This assessment broadly covers Islamic borrowing.
It should be noted that from January 26, 2019 to July 26, 2024, the State of Senegal respected all its commitments in terms of repayment of its debt.
Senegal
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