The IILM’s Islamic papers remain a go-to solution for investors to place short-term cash in the context of potential upcoming shift of global monetary conditions and investors’ anticipation of rising rates.
The International Islamic Liquidity Management Corporation (IILM) has successfully completed its tenth auction for 2021 today, by reissuing a total of USD 1.15 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) 0.20% for USD 450 million for 1-month tenor;
ii) 0.25% for USD 350 million for 3-month tenor; and
iii) 0.35% for USD 350 million for 6-month tenor.
Today’s Ṣukūk reissuance witnessed a competitive tender among Islamic Primary Dealers and investors across the GCC markets as well as Asia, with a strong orderbook in excess of USD 1.82 billion, representing an average oversubscription rate of 1.58 times.
Dr. Umar Oseni, Chief Executive Officer of the IILM, said: “We are pleased that going into the final quarter of the year, the IILM’s Ṣukūk programme continues to receive overwhelming demand from a diverse range of investors. The IILM’s Islamic papers remain a go-to solution for investors to place short-term cash in the context of potential upcoming shift of global monetary conditions and investors’ anticipation of rising rates.
“Today’s auction reflected strong demand towards the 1-month tenor as investors look to park cash on shorter tenor, due to the uncertainty surrounding the Federal Reserve tapering decision. For the remaining auctions for the rest of the year, we are confident of investors’ commitment to our programme and will continue to work towards meeting their liquidity needs,” Dr. Umar added.
Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 11.71 billion through 30 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, Luxembourg, 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.