Islamic Finance Magazine | The IILM reissues USD 940 million short-term Ṣukūk

Kuala Lumpur, Malaysia – 9 July 2024.

The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term Shari’ah-compliant financial instruments, has successfully completed the reissuance of an aggregate USD 940 million short-term Ṣukūk across three different tenors of one, three, and six-month respectively.

The three series were priced competitively at:

i) 5.30% for USD 440 million for 1-month tenor;

ii) 5.40% for USD 300 million for 3-month tenor; and

iii) 5.55% for USD 200 million for 6-month tenor.

Today’s Ṣukūk reissuance, which marks the IILM’s seventh auction for the year, witnessed a competitive tender among Primary Dealers and investors from markets across the GCC region as well as Asia, with a combined orderbook in excess of USD 2.01 billion, representing an average bid-to-cover ratio of 214%.

Mr. Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “As we continue the momentum post-Eid Al Adha holidays, we are pleased to observe a healthy market activity and strong demand among investors for the IILM’s Islamic papers amidst uncertain market conditions.”

“Apart from having the participation of Affin Islamic Bank as the IILM’s latest Primary Dealer, today’s auction also witnessed an encouraging level of interest from an Islamic banking window in a GCC country where the IILM does not currently have a Primary Dealer, further reinforcing the growing appeal of the IILM Ṣukūk amongst Islamic investors in the region,” Safri added.

Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 6.63 billion through 21 Ṣukūk series.

The issuance forms part of the IILM’s “A-1” (S&P) and “F1” (Fitch Ratings) rated USD 4 billion short-term Ṣukūk issuance programme.

The IILM’s short-term Sukῡk is distributed by a diversified network of 11 primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, Boubyan Bank, CIMB Islamic Bank Berhad, Dukhan Bank, First Abu Dhabi Bank, Kuwait Finance House, Maybank Islamic Berhad, Qatar Islamic Bank, and Standard Chartered Bank.

The IILM is a regular issuer of short-term Ṣukūk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services. The total amount of IILM Ṣukūk outstanding is now USD 3.51 billion. The IILM will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.

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