Senegal Plans First Islamic Sukuk Bond, Finance Ministry Official Says

Senegal may sell its first Islamic bond, known as sukuk, with involvement from Citigroup Inc., a Finance Ministry spokesman said.

“We are working on this, but it’s not yet for sure,” said Ousmane Gueye in an interview in Dakar, the capital. He declined to provide details about the offer’s date, value or specifically say how Citigroup is involved.

The West African nation, whose population is about 94 percent Muslim, is considering the bond to strengthen ties with investors and governments in the Middle East, said Birahim Seck, chief executive officer of Dakar-based SYM International Finance Corp., which advises Middle Eastern investors in Africa. The funds raised may be used for improvements in roads and energy, he said.

“This bond is going to happen very soon,” Seck said in a phone interview today. “Middle Eastern companies want to invest in West Africa, but they need a channel.”

Senegal is currently selling 75 billion CFA francs ($157.8 million) of five-year bonds, Gueye said Oct. 27. That offer will close Nov. 15.

To contact the reporter on this story: Drew Hinshaw in Dakar via Accra at ebowers1@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.