Today’s auction also marks the IILM’s second 12-month Ṣukūk offering, further exemplifying the IILM’s efforts to supply its Shari’ah-compliant paper across the short-term yield curve
Kuala Lumpur, Malaysia – 04 October 2022.
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 1.12 billion short-term Ṣukūk across three different tenors of one, three and twelve-month respectively.
The three series were priced competitively at:
i) 3.22% for USD 540 million for 1-month tenor;
ii) 3.95% for USD 330 million for 3-month tenor; and
iii) 4.50% for USD 250 million for 12-month tenor.
Today’s auction also marks the IILM’s second 12-month Ṣukūk offering, further exemplifying the IILM’s efforts to supply its Shari’ah-compliant paper across the short-term yield curve. The 12-month tenor received a strong market demand with a total orderbook of USD 496 million, with a bid-to-cover ratio of close to 200%. The 12-month tenor also saw a more competitive pricing compared to the first 12-month tranche issued in July 2022.
Today’s Ṣukūk reissuance is the IILM’s eleventh Ṣukūk auction for 2022. The auction garnered significant interest among Islamic Primary Dealers and investors across the GCC markets as well as Asia. The competitive tender witnessed a strong total orderbook in excess of USD 1.92 billion, representing a weighted average bid-to-cover ratio of 172%.
Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 11.55 billion through 31 Ṣukūk series. The IILM will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.
The IILM short-term Ṣukūk programme is rated “A-1” by S&P and recently received a second international short-term credit rating of “F1” from Fitch Ratings on 28th September 2022.
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.