Today’s auction also witnessed an encouraging level of interest from an Islamic banking window in a GCC country where the IILM does not currently have a Primary Dealer, further reinforcing the growing appeal of the IILM Ṣukūk amongst Islamic investors in the region
Kuala Lumpur, Malaysia – 9 July 2024.
The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term Shari’ah-compliant financial instruments, has successfully completed the reissuance of an aggregate USD 940 million short-term Ṣukūk across three different tenors of one, three, and six-month respectively.
The three series were priced competitively at:
i) 5.30% for USD 440 million for 1-month tenor;
ii) 5.40% for USD 300 million for 3-month tenor; and
iii) 5.55% for USD 200 million for 6-month tenor.
Today’s Ṣukūk reissuance, which marks the IILM’s seventh auction for the year, witnessed a competitive tender among Primary Dealers and investors from markets across the GCC region as well as Asia, with a combined orderbook in excess of USD 2.01 billion, representing an average bid-to-cover ratio of 214%.
Mr. Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “As we continue the momentum post-Eid Al Adha holidays, we are pleased to observe a healthy market activity and strong demand among investors for the IILM’s Islamic papers amidst uncertain market conditions.”
“Apart from having the participation of Affin Islamic Bank as the IILM’s latest Primary Dealer, today’s auction also witnessed an encouraging level of interest from an Islamic banking window in a GCC country where the IILM does not currently have a Primary Dealer, further reinforcing the growing appeal of the IILM Ṣukūk amongst Islamic investors in the region,” Safri added.
Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 6.63 billion through 21 Ṣukūk series.
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.
The IILM’s short-term Sukῡk is distributed by a diversified network of 11 primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, Boubyan Bank, CIMB Islamic Bank Berhad, Dukhan Bank, First Abu Dhabi Bank, Kuwait Finance House, Maybank Islamic Berhad, Qatar Islamic Bank, and Standard Chartered Bank.
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 will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.
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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, Malaysia, Mauritius, Nigeria, Qatar, Türkiye, 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)
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F: +60(3) 2170 5111
E: info@iilm.com
Website: http://www.iilm.com
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Download the Arabic version of the press release here.
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