Uganda is in the advanced stages of issuing its inaugural sovereign sukuk to finance part of a €2.7bn (R52bn) railway project, the East African country’s finance ministry said on Tuesday.
The sukuk, or Islamic bonds, will cover 15% of the standard gauge railway’s total cost, the finance ministry said in a post on X.
The other 60% of the cost is expected to come from export credit agencies, and 25% from development finance institutions.
The ministry said Patrick Ocailap, deputy secretary to the treasury, was leading a sukuk roadshow to other East African countries, including Kenya and Tanzania, to gauge demand and support price discovery ahead of the issuance.
The delegation also includes representatives from Stanbic Bank Group, the central bank and the railway project team.
Reuters
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