The IILM announces its most active Primary Dealers for 2023

The IILM achieved a critical milestone in 2023 when it crossed the USD 100 billion mark in total issuances since the organisation’s inception, and this would not have been possible without the tremendous support of the Primary Dealers. They have played a pivotal role in ensuring that the IILM’s short-term liquidity instruments continue to support the growth of cross-border Islamic liquidity management, and to a wider extent, the stability of the Islamic finance ecosystem

Kuala Lumpur, Malaysia – 23 January 2024.

The International Islamic Liquidity Management Corporation (“IILM”) is pleased to announce the top three most active Primary Dealers for the IILM Ṣukūk Programme for 2023.

Based on the total amount allocated at primary level as of end December 2023, namely a total of 36 Ṣukūk issued for a cumulative amount of USD 11.52 billion, the top three Primary Dealers are:
1. Kuwait Finance House
2. First Abu Dhabi Bank
3. Boubyan Bank

For Primary Dealer activity and footprint in the secondary market, based on the total trading volume of USD 3.26 billion as of end December 2023, the top three Primary Dealers are:
1. Kuwait Finance House
2. First Abu Dhabi Bank
3. Al Baraka Turk

Mr. Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “The IILM achieved a critical milestone in 2023 when it crossed the USD 100 billion mark in total issuances since the organisation’s inception, and this would not have been possible without the tremendous support of the Primary Dealers. They have played a pivotal role in ensuring that the IILM’s short-term liquidity instruments continue to support the growth of cross-border Islamic liquidity management, and to a wider extent, the stability of the Islamic finance ecosystem. We look forward to continuing supporting our partners and stakeholders in ensuring that the global Islamic finance markets have an efficient and safe haven instruments for them to manage their Shari’ah-compliant liquidity needs by investing their excess liquid funds with sufficient yields.”

Kuwait Finance House
“Kuwait Finance House (“KFH”) is once again very pleased to have maintained its leading position in the primary as we as the secondary markets for the third time in a row, an unprecedented feat as the IILM’s Primary Dealer. We are extremely honoured to be relied upon as a supportive and committed partner in promoting and distributing the IILM’s ‘A-1’ and ‘F1’ rated Sukuk programme to global investors, who continue to hold the IILM’s papers in high regard as reflected by the fact that the IILM’s Sukuk issuances during the year accounted for approximately 20% of total global US dollar Sukuk issuances,” said Khalid Al Rukhayes, Executive Manager, Capital Market Desk of KFH.

First Abu Dhabi Bank
“First Abu Dhabi Bank (“FAB”) is grateful for the recognition from IILM, ranking us as the second Primary Dealer for the second consecutive year. This accomplishment underscores our role as a market leader, highlighting our commitment to enhancing the global Sukuk market. We remain dedicated to supporting IILM and the Islamic finance realm,” said Tahir Aslam, Head of Credit Trading at FAB.

Boubyan Bank
“Boubyan Bank is truly humbled to be recognized among the top three Primary Dealers for the primary market for the first time ever. This recognition means a lot to our bank in a year that has been characterized by many different challenges, primarily the global headwinds stemming from tightening monetary policy and geopolitical instability across regions. Yet, we have remained a committed partner with the IILM and its highly-rated short-term Sukuk Programme and this recognition will motivate us to deepen our collaboration with the IILM to further enhance Islamic cross-border liquidity flows,” said Adel Al-Mutairi, Treasurer of Boubyan Bank.

Al Baraka Turk
“Being recognized among the top ranked Primary Dealers in the secondary market for the second year running is certainly a feat for Al Baraka Turk and we are honoured to be a major representative for the IILM in Eurasia and specifically Türkiye. We believe the IILM’s short-term Sukuk has truly benefited market participants in the Islamic Finance space and global Sukuk market, and are excited to continue this journey together and fulfill market demands for Islamic liquidity management instruments,” said Serhan Yildirim, Executive Vice President of Al Baraka Turk.

The ranking assessments take into account key aspects of Primary Dealers’ role in distributing the IILM Ṣukūk at primary level by reaching out to a broad investor base and to ensure liquidity of the short-term Islamic instruments in the secondary market. Primary market appraisal is based on successful bids realised at auctions during the year, whereas secondary market activity is ranked based on turnover and percentage contribution in secondary market.

Since 2013, the IILM has published the league table of top three most active Primary Dealers at primary and since 2019 at secondary market.

The IILM Short term Ṣukūk programme is rated “A-1” by S&P and ‘F1’ by Fitch Ratings. The total outstanding of the IILM Ṣukūk stands at USD 3.51 billion, with a Shari’ah tradability ratio of 79% tangible assets as of today.

For the full participation in auctions and primary allocations, the 2023 ranking of the Financial Institutions is as follows:

1. Kuwait Finance House
2. First Abu Dhabi Bank
3. Boubyan Bank
4. Maybank Islamic Bank
5. Al Baraka Turk
6. Standard Chartered Bank
7. Dukhan Bank
8. Abu Dhabi Islamic Bank
9. CIMB Islamic Bank
10. Qatar Islamic Bank

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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, Türkiye, 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.

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Download the Arabic version of the press release here.