Benin tests global appetite for Islamic bond in frontier-market return

• Benin sounds out investors on first international sukuk
• Deal could raise $1bn alongside dollar bond reopening

COTONOU, BENIN – Benin is exploring whether Islamic finance can open a new funding channel as it prepares a cautious return to international debt markets.

After years of relying on conventional euro and dollar bonds, the West African state has begun testing investor appetite for a potential sovereign sukuk, according to people familiar with the discussions. Government officials met investors in London last week to gauge demand for a transaction that could include a seven-year Islamic bond alongside a reopening of existing dollar notes.