Togo Prepares to Repay CFA12.1 Billion on Islamic Sukuk Loan by August 2025

Economic governance

Wednesday, 23 July 2025 17:44

Togo Prepares to Repay CFA12.1 Billion on Islamic Sukuk Loan by August 2025

(Togo First) - Togo plans to pay CFA12.121 billion on August 17, 2025, as part of the partial repayment of its Islamic sovereign bond, “Sukuk State of Togo 6.50% 2016-2026.” The Regional Securities Exchange (BRVM) announced this payment schedule.

Lomé launched this Sukuk in July 2016 to raise CFA150 billion. The proceeds financed key economic and social development projects across the country.

The Sukuk uses a Joint Receivables Securitization Fund (FCTC) and issued 15 million units at CFA10,000 each. It carries a fixed profit margin of 6.50%, reflecting a Sharia-compliant profit-sharing model instead of traditional interest.

The BRVM specified that the securities will trade ex-profit margin starting August 12, 2025. This means buyers after that date will not receive profits due on August 17. The cutoff date to earn the profit payment is August 11.

As Togo’s first Islamic finance bond, the Sukuk represents ethical financing backed by tangible assets, avoiding conventional interest prohibited by Sharia law. Through this model, the issuer and investors share profits.

By making this upcoming repayment, Togo demonstrates its reliability in regional financial markets. It also continues to attract investors interested in ethical, Sharia-compliant investments.

The total CFA150 billion issuance went toward fostering Togo’s economic and social growth. This step marked a pioneering move for the country in the Islamic finance market. This August installment covers part of the borrowed principal and the semi-annual profit promised to investors under the Islamic finance contract.

Togo’s repayment schedule follows the bond’s 10-year maturity with a two-year grace period. The funds will disburse across 16 tranches, with the final payment on August 17, 2026.

The 6.5% profit margin reflects the agreed profit-sharing mechanism instead of interest, complying with Islamic law principles.

Investors can trade these Sukuk units on the BRVM exchange and monitor their performance in real-time.

Ayi Renaud Dossavi

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