This auction is indeed a landmark for us, as it marks the IILM’s inaugural issuance of a 12-month tenor Ṣukūk and we are glad that it was well received by the market, with the demand for the tranche reaching 1.85 times the issuance size (of USD 250 million)

Kuala Lumpur, Malaysia – 04 July 2022.

The International Islamic Liquidity Management Corporation (IILM) has achieved a key milestone in its 12-year history after successfully issuing its first ever 12-month short-term “A-1” rated Ṣukūk. The USD 250 million tranche was issued together with the one-month and three-month tenors, with an allocated amount of USD 250 million and USD 330 million respectively.

The three series were priced competitively at:
i) 1.90% for USD 250 million for 1-month tenor;
ii) 2.45% for USD 330 million for 3-month tenor; and
iii) 3.65% for USD 250 million for 12-month tenor.

Today’s Ṣukūk reissuance marks the IILM’s eighth Ṣukūk auction for 2022. The auction garnered significant appetite 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 1.59 billion, representing an average bid-to-cover ratio of 192%.

Dr. Umar Oseni, Chief Executive Officer of the IILM, said: “We are pleased with the conclusion of today’s USD 830 million auction, right before the Eid al-Adha holidays. This auction is indeed a landmark for us, as it marks the IILM’s inaugural issuance of a 12-month tenor Ṣukūk and we are glad that it was well received by the market, with the demand for the tranche reaching 1.85 times the issuance size (of USD 250 million).”

“Despite market volatility in a rising rate environment to combat inflation, today’s successful issuance continues to demonstrate the IILM’s commitment and key role in diversifying the supply of high quality Shari’ah-compliant liquidity instruments, particularly in commencing to build out the issuance yield curve up to 12 months. We are confident that the IILM’s USD issuances will continue to fulfil the demands of institutions offering Islamic financial services and contribute to the stability of the wider Islamic finance industry.”

Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 8.06 billion through 22 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.