We are particularly pleased with the issuance of the 12-month tenor, as it marks the third time the longer tenor has been issued since its inaugural issuance in July last year
Kuala Lumpur, Malaysia – 13 June 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 1.2 billion short-term Ṣukūk across three different tenors of one, three, and twelve-month respectively.
The three series were priced competitively at:
i) 5.35% for USD 470 million for 1-month tenor;
ii) 5.60% for USD 460 million for 3-month tenor; and
iii) 5.65% for USD 270 million for 12-month tenor.
Today’s Ṣukūk reissuance garnered a strong demand from both Primary Dealers and investors with a combined orderbook of USD 1.7 billion, representing an average bid-to-cover ratio of 147%.
Dr. Umar Oseni, Chief Executive Officer of the IILM, said: “Given the size of today’s issuance, we are pleased with the successful conclusion of the IILM’s sixth auction for the year. We are particularly pleased with the issuance of the 12-month tenor, as it marks the third time the longer tenor has been issued since its inaugural issuance in July last year. Despite the challenging global market conditions on the back of the US debt ceiling issues, today’s auction saw a healthy coverage ratio across all tenors, signifying a sustained demand for the IILM’s Islamic liquidity management instruments by investors seeking high quality Shari’ah-compliant papers.”
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 5.55 billion through 18 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.