We are indeed pleased with today’s auction that saw the 6-month tenor, especially, fully covered within the first five minutes, reflecting investors healthy appetite for the tenor. Today’s auction is also made more meaningful as it marks 10 years since the IILM issued its inaugural short-term Ṣukūk in August 2013
Kuala Lumpur, Malaysia – 1 August 2023.
The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term Shari’ah-compliant financial instruments, has successfully reissued a total of USD 1.15 billion short-term Ṣukūk across three different tenors of one, three, and six-month respectively.
The three series were priced competitively at:
i) 5.35% for USD 300 million for 1-month tenor;
ii) 5.63% for USD 450 million for 3-month tenor; and
iii) 5.72% for USD 400 million for 6-month tenor.
Today’s Ṣukūk reissuance, which marks the IILM’s eighth auction for the year as well as commemorates the 10-year anniversary of the first IILM Ṣukūk issuance in 2013, garnered a strong demand from both Primary Dealers and investors with a combined orderbook of USD 1.89 billion, representing an average bid-to-cover ratio of 165%.
Dr. Umar Oseni, Chief Executive Officer of the IILM, said: “We are indeed pleased with today’s auction that saw the 6-month tenor, especially, fully covered within the first five minutes, reflecting investors healthy appetite for the tenor. Today’s auction is also made more meaningful as it marks 10 years since the IILM issued its inaugural short-term Ṣukūk in August 2013.”
The issuance forms part of the IILM’s “A-1” (S&P) and “F1” (Fitch Ratings) rated USD 4 billion short-term Ṣukūk issuance programme.
Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 7.49 billion through 24 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.
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.