While the IILM’s issuance this month appears to be quite sizeable at the tail end of the year, on the back of the markets’ intensifying expectations for a tighter policy by the Fed, we are pleased that the issuance for all tenors were fully subscribed at a competitive all-in profit rates
The International Islamic Liquidity Management Corporation (IILM) is pleased to announce that it has successfully completed the auction for the reissuance of an aggregate USD 1.31 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) 0.18% for USD 400 million for 1-month tenor;
ii) 0.26% for USD 560 million for 3-month tenor; and
iii) 0.36% for USD 350 million for 6-month tenor.
In its eleventh auction for 2021, the IILM’s Ṣukūk reissuance today witnessed a competitive tender among Islamic Primary Dealers and investors across the GCC markets as well as Asia, with a strong orderbook in excess of USD 1.79 billion, representing an average oversubscription rate of 1.37 times.
Dr. Umar Oseni, Chief Executive Officer of the IILM, said: “Today’s auction saw a sustained demand for the 1-month and 3-month tenors of the IILM’s Islamic papers, given the current appetite of investors for shorter tenors in anticipation of an impending rate hike and tapering of asset purchase by the Federal Reserve.
While the IILM’s issuance this month appears to be quite sizeable at the tail end of the year, on the back of the markets’ intensifying expectations for a tighter policy by the Fed, we are pleased that the issuance for all tenors were fully subscribed at a competitive all-in profit rates. The IILM continues to fulfill the liquidity needs of the Islamic markets with adequate flexibility.”
Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 13.02 billion through 33 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, Luxembourg, 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.