(Updates with comment from Diop in second paragraph.)
June 15 (Bloomberg) -- Senegal’s $200 million sukuk, to be sold later this year, will be used for budgetary support as the West African nation seeks new sources of funding, said Finance Minister Abdoulaye Diop.
“We simply want to experiment, to diversify our sources of income,” Diop told reporters at a conference in Dakar, the capital, today. “There is a lot of money in Islamic countries that is flowing toward European countries and Arab states in the Middle East. We want to see if it can come to African countries.”
The sukuk would be Senegal’s second bond sold on international markets this year, after the May 6 sale of $500 million of 10-year Eurobonds. The Islamic debt will be denominated in the local CFA franc currency, said Belia Fofana, a financial analyst with Standard Chartered Plc who arranged the Eurobond sale, in an interview May 13.
Senegal will sell $200 million less in regional Treasury bills at the Central Bank of West African States to make room for the issue, Fofana said.
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