Togo to pay next February 17 the first tranche of profits associated to its 2016-2026 6.50% Sukuk

Public finance

Friday, 25 January 2019 16:08

Togo to pay next February 17 the first tranche of profits associated to its 2016-2026 6.50% Sukuk

(Togo First) - Togo will, on next February 17, proceed to the semester payment of profits and partially reimburse capital associated to its “2016-2026 6.50% State Sukuk”, BRVM revealed in a statement.

While no detail filtered about the amount of this first partial payment, the notice released by the Joint Fund for Receivables Securization upon the sukuk’s issuance for its part indicates that a little more than CFA16.309 billion will be paid, over a total of around 217.635 billion.

This would be the first of 16 tranches to be made with the last set on August 17, 2026.

Let’s recall that Togo subscribed, in the framework of this sukuk, a total nominal amount of 150 billion CFA for a projected maturity period of 120 months, with a two-year grace period, at a unit price of CFA10,000.

According to the Islamic Development Bank, “a Sukuk is the Islamic equivalent of the western bond. However, unlike regular bonds where the investor owns a debt obligation owed by the issuer, a Sukuk provides the investor owns part of an asset linked to the investment, and also a portion of earnings associated to the asset, and shares part of the related risks. This complies with the Sharia – Islamic religious law, which prohibits interest billing or payment”.

Séna Akoda

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