Kuala Lumpur, Malaysia – 2 September 2025

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 1.285 billion short-term Ṣukūk across four different tenors of one, three, six, and twelve-month respectively.

The four series were priced competitively at:
i) 4.35% for USD 450 million for 1-month tenor;
ii) 4.33% for USD 435 million for 3-month tenor;
iii) 4.18% for USD 200 million for 6-month tenor; and,
iv) 4.05% for USD 200 million for 12-month tenor

The successful completion of today’s short-term Ṣukūk transaction marks the IILM’s fourteenth auction year-to-date (YTD), bringing total issuances to USD 15.66 billion across 46 Ṣukūk series of varying tenors. It also represents the second time that the IILM has offered investors with four distinct tenors within a single auction.

The auction attracted robust participation from the IILM’s network of Primary Dealers and global investors, generating total bids of USD 3.1 billion and achieving a strong average bid-to-cover (BTC) ratio of 2.4 times.

Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “The IILM’s latest auction featured four distinct tenors, reaffirming our continued commitment to offering high-quality Shari’ah-compliant liquidity instruments that address the evolving needs of market participants globally. The strong investor participation across maturities reflects not only sustained confidence in the IILM’s programme, but also the trust placed in the strength and credibility of our issuance framework. This steadfast support reinforces the IILM’s position as a reliable pillar of global Islamic liquidity management, contributing to the industry by enhancing cross-border connectivity, deepening secondary market activity, and promoting the overall stability of the Islamic financial system.”

“Today’s issuance also comes as global markets position ahead of the US Federal Reserve’s anticipated rate cut as early as this month. This shift in monetary policy expectations has created a constructive environment for short-term markets, with demand remaining strong across all tenors. Investor interest was particularly pronounced at the longer end of the curve, signaling a clear shift in the sentiment and growing confidence in the rate outlook.”

“The robust demand also coincides with the recent pricing of a highly rated sovereign Ṣukūk issuance by a GCC issuer, further highlighting the growing appeal of Islamic finance instruments across the curve.”

The issuance forms part of the IILM’s “A-1” (S&P) and “F1” (Fitch Ratings) rated USD 6 billion short-term Ṣukūk issuance programme.

The IILM’s short-term Sukῡk is distributed by a diversified and growing network of primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, AlRayan Bank, Boubyan Bank, CIMB Islamic Bank Berhad, Dukhan Bank, First Abu Dhabi Bank, Golden Global Investment Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic Berhad, Meethaq Islamic Banking from Bank Muscat, 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 IILM will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.