Benin Optimizes its Sovereign Debt Structure

On 23 January 2026, the Government of Benin announced that it had swapped USD 850 million worth of its debut Sukuk financing and another bond maturing in 2038 into euros. to manage currency risks and costs. As a member of the West African Economic and Monetary Union using the FCFA pegged to the Euro, Benin seeks to make its liabilities more attractive.

The USD 500 million seven-year Sukuk had been converted into Euros with a 4.92% coupon rate, while another USD 350 million bond maturing in 2039 has a coupon rate of 6.19%.

Benin has a Debt-to-GDP ratio of 54% and is rated Moody’s, BB- by S&P, B+ by Fitch. With improved sovereign ratings, Benin noted with satisfaction that it has seen an exceptionally strong appetite, with subscriptions exceeding USD 7 billion.

Citigroup, JPMorgan, HSBC, and Emirates NBD Capital acted as joint lead arrangers for the #Eurobond. Rothschild served as the financial advisor. The Sukuk offering was coordinated by Citigroup, Emirates NBD Capital, JPMorgan and HSBC, while Arqaam Capital, Emirates NBD Capital, Citigroup, HSBC, and JPMorgan were the bookrunners.

In the same breath, Benin successfully raised USD one billion in fresh capital on the international markets and became the first African country to do so in 2026. The first operation consisted of a bond issue to the tune of USD 500 million. The bond has a 16-year term and a coupon rate of 6.48%. Demand was strong, and the order book volume reached USD 3.5 billion.

Additionally, Benin secured a EUR 500 million commercial loan from Deutsche Bank at 6% interest rate and a 15-year term. The loan is backed by a EUR 200 million guarantee from the International Development Association (IDA) and managed by the World Bank Multilateral Investment Guarantee Agency (MIGA).

The Government of Benin intends to put the proceeds to attaining its Sustainable Development Goals (#SDG), particularly for priority projects identified by its National Development Plan (#NDP).