Togo actively prepares for the payment of semi-annual profits and partial repayment of its Islamic bond named “Sukuk Etat du Togo 6.50% 2016-2026.” According to a recent announcement by the Regional Securities Exchange (BRVM), this transaction is scheduled for August 17, 2023.
Although the exact repayment amount has not been disclosed in the public notice, projections suggest a disbursement of approximately 13.049 billion CFA francs. This operation follows a previous repayment made on February 17, 2023, amounting to 13.4 billion CFA francs.
The Sukuk, representing an issuance of bonds in compliance with Islamic finance principles, was issued by Togo in 2016 for a ten-year period. At that time, Lomé successfully raised a total of 156 billion CFA francs by issuing 15.6 million units of the bond, each with a face value of 10,000 CFA francs, carrying an annual rate of 6.5%.
This financial initiative demonstrates Togo’s commitment to diversify its sources of funding while adhering to Islamic finance principles. The Sukuk serves as an innovative financial tool allowing investors to participate in the country’s development projects while complying with Sharia principles.
The bond issuance has provided Togo with access to the necessary capital for financing infrastructure projects and promoting the country’s economic growth. Additionally, the success of this operation showcases the trust of both domestic and international investors in the Togolese economy and its ability to honor its financial commitments.
