Despite a challenging and highly volatile operating environment, we are pleased that the IILM is able to continue fulfilling the liquidity needs of the Islamic markets, with issuance for all tenors fully subscribed at a competitive all-in profit rates
Kuala Lumpur, Malaysia – 18 April 2022.
The International Islamic Liquidity Management Corporation (IILM) has successfully reissued a total of USD 1.28 billion short-term “A-1” rated Ṣukūk across three different tenors of one, three, and six-month respectively.
The three series were priced competitively at:
i) 0.75% for USD 600 million for 1-month tenor;
ii) 1.28% for USD 380 million for 3-month tenor; and
iii) 1.78% for USD 300 million for 6-month tenor.
Today’s Ṣukūk reissuance marks the IILM’s fourth Ṣukūk auction for 2022. The auction garnered significant interest among Islamic Primary Dealers and investors across the GCC markets as well as Asia. The competitive tender witnessed a strong orderbook in excess of USD 1.64 billion, representing an average bid-to-cover ratio of 128%.
Dr. Umar Oseni, Chief Executive Officer of the IILM, said: “Going into the second quarter of the year, we are mindful of the continued geopolitical uncertainties and its impact on the financial markets globally. Despite a challenging and highly volatile operating environment, we are pleased that the IILM is able to continue fulfilling the liquidity needs of the Islamic markets, with issuance for all tenors fully subscribed at a competitive all-in profit rates.”
Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 4.69 billion through twelve Ṣukūk series. The IILM will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.
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 short-term Ṣukūk programme is rated “A-1” by S&P.
About the IILM
The International Islamic Liquidity Management Corporation (IILM) is an international organisation established on 25 October 2010 by central banks, monetary authorities and multilateral organisations to develop and issue short-term Shari’ah-compliant financial instruments to facilitate effective cross-border liquidity management for institutions that offer Islamic financial services (IIFS).
The current members of the IILM Governing Board are the central banks and monetary agencies of Indonesia, Kuwait, Malaysia, Mauritius, Nigeria, Qatar, Turkey, the United Arab Emirates, as well as the multilateral Islamic Corporation for the Development of the Private Sector.
Membership of the IILM is open to central banks, monetary authorities, financial regulatory authorities or government ministries or agencies that have regulatory oversight of finance or trade and commerce, and multilateral organisations.
The IILM is hosted by Malaysia and headquartered in Kuala Lumpur.
The International Islamic Liquidity Management Corporation (IILM)
T: +60(3) 2170 5000
F: +60(3) 2170 5111
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Download the Arabic version of the press release here.