Benin plans to offer up to 1 billion US dollars in dollar-denominated sukuk bonds and additional loan securities, Bloomberg reported, marking the first African sovereign-debt sale of 2026.

The offering could take place on Jan. 20, with the final amount determined by investor demand, according to sources familiar with the matter.

The West African nation intends to issue a 500 million US dollars seven-year sukuk, alongside a similar amount through sales of existing bonds maturing in 2038 and 2041, one source said. Sukuk bonds, structured to comply with Islamic law by avoiding interest, are increasingly used by sovereign borrowers in the region.

This follows a 500 million US dollars dollar-bond sale by Benin almost a year ago. The country’s 750 million US dollars debt due in 2038 traded little changed at a yield of 7.52 percent on Friday, while banks including Citigroup Inc. and JPMorgan Chase & Co. have been hired to market the new offering, Bloomberg reported.

Political events have shadowed the debt sale. A failed coup in December saw rival army factions clash in Cotonou, the commercial capital, and S&P Global Ratings downgraded Benin’s long-term foreign-currency debt outlook from positive to stable two weeks later. The offering comes three months before elections in which Finance Minister Romuald Wadagni, selected by President Patrice Talon, is expected to succeed, with the main opposition barred from participation.

Investor risk appetite, however, appears resilient. Samir Gadio, head of Africa strategy at Standard Chartered Bank Plc, told Bloomberg that political uncertainty is expected to remain limited ahead of the anticipated election outcome, reducing concern over the attempted putsch.

Emerging-market debt performed strongly in 2025, with African sovereign bonds among the top performers. Bloomberg data show Ghana, Egypt, Nigeria, Kenya, and Zambia returned more than 20 percent, while local bond markets in Nigeria and South Africa delivered around 40 percent. By contrast, African Eurobonds from Ghana, Nigeria, Kenya, South Africa, and Ivory Coast have been among the worst-performing emerging-market debt this year.