USD 3.722 billion orderbook supports USD 100 million upsize amid prolonged geopolitical conflict and heightened global market volatility

Kuala Lumpur, Malaysia – 3 November 2026

The International Islamic Liquidity Management Corporation (IILM) today announced the successful completion of a record USD 1.572 billion short-term Sukuk auction across five tenors, marking the largest issuance in its history. Surpassing the previous record set just two weeks ago, the transaction further reinforces IILM’s issuance momentum and lifts its outstanding Sukuk portfolio to a new all-time high of USD 7.59 billion.

The achievement comes against the backdrop of a prolonged geopolitical conflict, persistent inflationary pressures and exceptionally volatile global financial markets, where heightened uncertainty continues to shape investor sentiment and liquidity conditions. Despite these challenges, IILM’s latest auction demonstrated the resilience of demand for its short-term Sukuk, underscoring the continued confidence of market participants in its role as a reliable provider of high-quality Shari’ah-compliant liquidity instruments.

The transaction attracted a total orderbook of USD 3.722 billion, representing an oversubscription of 2.37 times. Robust investor demand enabled IILM to upsize the final auction by USD 100 million from its initial target of USD 1.472 billion, reflecting the depth and resilience of its investor base amid a highly uncertain market environment.

The auction also saw participation from member institutions, which accounted for approximately 17% of the total orderbook. Together with demand from Islamic financial institutions, asset managers, private banking institutions and conventional market participants, this participation highlights the continued relevance of IILM Sukuk as an efficient Shari’ah-compliant instrument for short-term liquidity management and its importance in supporting the broader international Islamic money market.

The Sukuk were issued and reissued as follows:

• USD 338 million with a 2-week tenor (maturity date: 19 November 2026) at a profit rate of 4.20%;
• USD 444 million with a 1-month tenor (maturity date: 9 December 2026) at a profit rate of 4.25%;
• USD 511 million with a 3-month tenor (maturity date: 28 January 2027) at a profit rate of 4.38%;
• USD 207 million with a 6-month tenor (maturity date: 6 May 2027) at a profit rate of 4.50%; and
• USD 72 million with a 12-month tenor (maturity date: 21 October 2027) at a profit rate of 4.80%.

The transaction was executed amid sustained geopolitical tensions and heightened uncertainty across global financial markets, with elevated energy prices, persistent inflationary pressures and shifting monetary policy expectations contributing to pronounced market volatility. In this environment, the latest issuance underscores IILM’s continued commitment to fulfilling its mandate by providing the international Islamic financial market with high-quality Shari’ah-compliant instruments across a range of short-term maturities, supporting liquidity management through increasingly challenging market cycles.

Mohamad Safri Shahul Hamid, Chief Executive Officer of IILM, said: “The ability to upsize today’s transaction amid a continued challenging global environment underscore both the resilience of demand for IILM’s short-term Sukuk and the depth of our investor base. This week’s renewed strikes in the Strait of Hormuz are a reminder that the prolonged US–Iran conflict remains unresolved, even as mediation efforts continue, and energy markets remain highly sensitive to each development. With US Treasury yields remaining elevated despite their recent easing, and uncertainty surrounding the US midterm elections adding another dimension to the broader fiscal and policy outlook, investors continue to place a premium on liquidity, quality and flexibility.”

“IILM’s objective goes beyond meeting immediate liquidity needs. It is about building a deeper, more resilient international Islamic money market that can support institutions through changing market cycles and periods of heightened uncertainty. Today’s record issuance reinforces the importance of maintaining a reliable and diversified supply of high-quality Shari’ah-compliant liquidity instruments, particularly in an increasingly volatile global environment.”

IILM’s short-term Sukuk issuance year-to-date now totals USD 27.352 billion across 103 series, compared with USD 22.9 billion across 42 series for the whole of 2025. This represents an increase of USD 4.452 billion, or approximately 19%, over the previous full-year issuance volume, further demonstrating IILM’s sustained growth and its expanding contribution to the international Islamic money market.

IILM’s short-term Sukuk are distributed globally through its network of 16 Primary Dealers: Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, AlRayan Bank, Boubyan Bank, Bank Nizwa, CIMB Islamic Bank Berhad, Dukhan Bank, First Abu Dhabi Bank, Jaiz Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic Berhad, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank and Standard Chartered Bank.

Through its published issuance calendar, IILM remains committed to providing a regular and diversified supply of high-quality, Sharīʿah-compliant short-term Sukuk across tenors ranging from two weeks to 12 months, supporting the liquidity management needs of Islamic financial institutions worldwide.