1442 GMT - Sukuk or Islamic bonds are emerging as an alternative funding source for some African sovereigns, helped by demand from GCC and African Islamic banks and sharia-compliant investment funds, Fitch Ratings says. African sukuk outstanding reached $7 billion in August, up around 16% on year, though issuance remains infrequent and accounts for less than 1% of global sukuk outstanding. Egypt has become a more regular issuer after regulatory reforms and deeper ties with the GCC, while Benin's $500 million sovereign sukuk this year attracted GCC participation and was more than eight times oversubscribed, Fitch says. Structural constraints mean African issuance is likely to remain sporadic over the medium term.
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