IslamicFinance.de

Africa’s development needs are greatly aligned with Islamic finance given the continent’s infrastructure deficit, paving the way for more sharia-compliant products on the continent. According to Imran Mufti, partner at Riyadh-based law firm Hogan Lovells, being attached to tangible infrastructure and development projects is in line with the ethos of Islamic finance. Mufti’s statement comes following three sukuk issuances in West Africa on the 18th October from Côte d’Ivoire, Senegal and Togo. Each sharia-compliant bond was listed on the regional bourse, the Bourse Régionale des Valeurs Mobilières (BRVM). Mufti said the latest sukuk issues’ success and tight yields show that investors are comfortable with sukuk from Africa.

According to law firm Hogan Lovells, the launch of Sukuk bonds by three West African governments will open up a vast financing channel for the region. Hogan Lovells advised the Islamic Corporation for the Development of the Private Sector (ICD) as lead arranger on the issuance of three sovereign Sukuks in West Africa. These include Cote d’Ivoire, Senegal and the Republic of Togo. The Sukuks were listed on the Bourse Régionale des Valeurs Mobilières (BRVM), Abidjan, Cote d’Ivoire. Altogether with the debut issuances for Senegal and Cote d’Ivoire, the combined listing value was CFA 766 billion. Imran Mufti, who led the Hogan Lovells’ team, said the landmark Sukuk bonds will enhance the development of Islamic finance in West Africa.