Given the size of the issuance today, which is the IILM’s largest Ṣukūk issuance for the year to date, we are very pleased with a successful auction that saw the offerings being oversubscribed
Kuala Lumpur, Malaysia – 06 September 2022.
The International Islamic Liquidity Management Corporation (IILM) has successfully reissued a total of USD 1.34 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) 2.72% for USD 490 million for 1-month tenor;
ii) 3.32% for USD 400 million for 3-month tenor; and
iii) 3.91% for USD 450 million for 6-month tenor.
Today’s Ṣukūk reissuance marks the IILM’s tenth 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 2.13 billion, representing an average bid-to-cover ratio of 159%.
Dr. Umar Oseni, Chief Executive Officer of the IILM, said: “Given the size of the issuance today, which is the IILM’s largest Ṣukūk issuance for the year to date, we are very pleased with a successful auction that saw the offerings being oversubscribed. This comes on the back of a tightening global environment with rising interest rates and its continuous impact on the financial markets.
“Despite the tougher conditions, the IILM will continue to supply its short-term cross-border Shari’ah-compliant liquidity instruments monthly to meet the needs of global investors in the Islamic financial industry.”
Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 10.43 billion through 28 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.