We made a strategic decision to split the May auction into two, given the current market conditions, especially with the recent rate hike by the US Federal Reserve of its benchmark interest rate by half a percentage point (50 basis point)
Kuala Lumpur, Malaysia – 11 May 2022.
The International Islamic Liquidity Management Corporation (IILM) has successfully reissued a total of USD 910 million short-term “A-1” rated Ṣukūk across two different tenors of one and three-month respectively.
The two series were priced competitively at:
i) 1.03% for USD 330 million for 1-month tenor; and
ii) 1.6% for USD 580 million for 3-month tenor
Today’s Ṣukūk reissuance marks the IILM’s fifth 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 orderbook in excess of USD 1.38 billion, representing an average bid-to-cover ratio of 152%.
Dr. Umar Oseni, Chief Executive Officer of the IILM, said: “As evidenced by today’s successful auction, the IILM decided to issue two tenors of one and three-month, compared to the usual three tenors which includes the 6-month issuance.”
“We made a strategic decision to split the May auction into two, given the current market conditions, especially with the recent rate hike by the US Federal Reserve of its benchmark interest rate by half a percentage point (50 basis point). The IILM will be offering its second May auction in about two weeks’ time,” Dr. Umar added.
Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 5.6 billion through fourteen 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, 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.