We are pleased that the 12-month tenor Ṣukūk, which was issued for the fourth time since its introduction last year, received overwhelming demand with subscription level reaching 2.4 times the offered amount
Kuala Lumpur, Malaysia – 3 October 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 980 million short-term Ṣukūk across three different tenors of one, three, and twelve-month respectively.
The three series were priced competitively at:
i) 5.37% for USD 330 million for 1-month tenor;
ii) 5.70% for USD 380 million for 3-month tenor; and
iii) 5.85% for USD 270 million for 12-month tenor.
Today’s Ṣukūk reissuance, which marks the IILM’s tenth auction for the year, garnered a strong demand from both Primary Dealers and investors with a combined orderbook of USD 2.03 billion, representing an average bid-to-cover ratio of 223%.
Dr. Umar Oseni, Chief Executive Officer of the IILM, said: “Today’s successful auction comes on the back of a continued challenging macro environment, as we remain in a ‘higher for longer’ reality on interest rates and tightening monetary policy. However, as the market enters the final quarter of the year, the IILM’s Islamic papers continue to gain solid momentum among a wide investor base searching for a safe return on their investments. We are pleased that the 12-month tenor Ṣukūk, which was issued for the fourth time since its introduction last year, received overwhelming demand with subscription level reaching 2.4 times the offered amount.”
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 9.63 billion through 30 Ṣukūk series.
The IILM’s various short-term Shari’ah-compliant instruments across varying amounts facilitate effective cross-border liquidity management among Institutions offering Islamic financial services. The IILM will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.
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.