The transaction garnered strong demand from Primary Dealers and investors with a combined orderbook in excess of USD 1.45 billion, representing an average oversubscription ratio of 1.6 times.
Kuala Lumpur, Malaysia: The International Islamic Liquidity Management Corporation (IILM) announced that it has successfully completed its final reissuance for the year, with the auction of USD 900 million short-term “A-1” rated Ṣukūk across two series comprising 1-month USD 400 million at 0.35% and 3-month USD 500 million at 0.42%.
The transaction garnered strong demand from Primary Dealers and investors with a combined orderbook in excess of USD 1.45 billion, representing an average oversubscription ratio of 1.6 times.
In terms of investor diversification, the transaction enjoyed strong sponsorship from both GCC and Asia based Primary Dealers, attracting sizeable orders across both tenors.
“The successful completion of December’s issuance marks the final transaction in a year filled with unprecedented volatility and disruption due to the Covid-19 pandemic.
Looking back over the last 12 months, the IILM has achieved several new milestones including increasing our overall outstanding issuance size to USD3.51 billion as well as conducting 35 issuances across a range of tenors to meet the varying demands of our Primary Dealers and investors. We are pleased to close out 2020 with a cumulative issuance amount of USD12 billion, the highest to date since our inaugural issuance. We hope to maintain this momentum going forward, in continuing to underpin the institution’s long-standing mandate and commitment to supply liquidity management tools for the Islamic banking community.” said Dr Umar Oseni, Chief Executive Officer of the IILM.
The IILM will commence its new issuance calendar in January 2021. 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. Its short-term Sukūk programme is rated “A-1” by S&P.
“As we look towards 2021 with headwinds including uneven economic recovery, renewed lockdowns and rising debt burdens from government policy responses, we stand ready to collaborate with our shareholders, Primary Dealers, investors and industry partners towards fostering a resilient and sound Islamic liquidity management ecosystem.” added Dr Umar.
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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, 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.
Media Enquiries:
The International Islamic Liquidity Management Corporation (IILM)
T: +60(3) 2170 5000
F: +60(3) 2170 5111
E: info@iilm.com
Website: http://www.iilm.com
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