We are pleased to start the year on a strong and positive note, with today’s first transaction of the year witnessing a healthy coverage ratio and its competitive yield reflecting a strong demand for high quality Shari’ah-compliant liquidity instruments
Kuala Lumpur, Malaysia – 17 January 2023.
The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term Shari’ah-compliant financial instruments, has successfully completed its first auction of the year with the reissuance of an aggregate USD 780 million short-term Ṣukūk across three different tenors of one, three, and six-month respectively.
The three series were priced competitively at:
i) 4.45% for USD 200 million for 1-month tenor;
ii) 4.85% for USD 380 million for 3-month tenor; and
iii) 5.05% for USD 200 million for 6-month tenor.
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 auction garnered a favourable and robust demand from both Primary Dealers and investors with a combined orderbook of USD 1.89 billion, representing an average bid-to-cover ratio of 242%.
Dr. Umar Oseni, Chief Executive Officer of the IILM, said: “We are pleased to start the year on a strong and positive note, with today’s first transaction of the year witnessing a healthy coverage ratio and its competitive yield reflecting a strong demand for high quality Shari’ah-compliant liquidity instruments.”
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.
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.