Benin, a West African nation, is set to sell up to 40% of its stake in Banque Internationale pour l'Industrie et le Commerce (BIIC) through an initial public offering (IPO) to raise funds for various development projects. The IPO aims to generate as much as 121.3 billion CFA francs ($192.3 million) by offering up to 23.1 million shares at 5,250 CFA francs per share.

The move marks a significant step towards diversifying the country's financing options, particularly in the post-COVID-19 era. As one of Africa's leading cotton producers, Benin is exploring new avenues to finance its development, given the rising yields in developed markets that have made borrowing more expensive for frontier and emerging markets.

The IPO, managed by EDC Investment Corp., will run from January 13 to February 28, according to a statement from the Finance Ministry. BIIC will become the second state-owned enterprise to go public and list on the regional stock exchange in Abidjan, Ivory Coast's commercial hub, following the successful listing of Loterie Nationale du Benin SA on December 13, which raised $69 million to support sports, cultural, and social initiatives.

BIIC, formed in 2020 from the merger of Banque Internationale du Bénin and Banque Africaine pour l'Industrie et de Commerce, is owned 51.3% by the government, 13.3% by the state pension fund, 32% by a state development fund, and 3.4% by the Port of Cotonou. The bank reported a net income of 27.2 billion CFA francs last year, more than double the previous year's earnings.

This development is significant, as it demonstrates Benin's commitment to exploring innovative financing structures to support its development goals. Last year, the country raised €350 million for environmental, social, and governance (ESG) projects through an innovative financing structure that reduced costs by 300 basis points compared to market rates.

The IPO is expected to have a positive impact on Benin's economy, providing a much-needed boost to its development projects. As the country continues to navigate the challenges of the post-COVID-19 era, this move is seen as a step in the right direction towards diversifying its financing options and promoting economic growth.

In conclusion, Benin's plans to sell a stake in its state-owned bank through an IPO mark a significant development in the country's efforts to finance its development projects. As the country continues to explore new avenues for financing, this move is expected to have a positive impact on its economy and promote economic growth in the region.