The International Islamic Liquidity Management Corporation (IILM) has announced the successful completion of an auction for the reissuance of A1-rated short-term Sukuk worth USD 1.070 billion.
According to a statement issued by the IILM on the 10th of November 2020, the Sukuk had an average oversubscription ratio of 145%, with a combined order book in excess of USD 1.56 billion. The Sukuk was issued in three series with different tenures: a USD 400 million issuance with a one-month tenure and a profit rate of 0.35%, a USD 460 million issuance with a three-month tenure carrying a profit rate of 0.44%, and a USD 210 million issuance with a six-month tenure and a profit rate of 0.51%.
The IILM stated that despite cautious market sentiments, the reissuance had generated strong investor demand, with primary dealers from the Gulf Cooperation Council comprising majority of the allocation of all three series. Meanwhile, Asian-based primary dealers and investors had strong participation on both three-and six-month tenures.
The three series mark the IILM’s 31st to 33rd issuances for 2020, with a total issuance amount of close to USD 11 billion since the start of the year, representing 33% of global USD-denominated Sukuk. Earlier in October 2020, the IILM successfully reissued a total of USD 1.1 billion short-term Sukuk in three series.
Dr Umar Oseni, Chief Executive Officer of the IILM, stated that IILM was pleased with the issuances given uncertain market conditions following the US election and resurgence of COVID-19 incidents globally. Dr Oseni added that IILM’s cross-border network of primary dealers and investors was the basis of strong demand of the short-term Sukuk and revealed that a final Sukuk auction would take place in December 2020.
S&P Global has rated IILM’s short-term Sukuk programme, which has a total outstanding Sukuk value at USD 3.51 billion, at ‘A-1’.