We are pleased with the successful conclusion of today’s transaction that witnessed a healthy coverage ratio across all tenors. Despite the uncertain global market environment coupled with the Federal Reserve raising interest rates for the ninth time in a row just two weeks ago, the IILM’s short-term cross-border Shari’ah-compliant liquidity instruments continue to be in demand among global investors in the Islamic financial services industry

Kuala Lumpur, Malaysia – 4 April 2023

The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term Shari’ah-compliant financial instruments, has successfully reissued a total of USD 740 million short-term Ṣukūk across three different tenors of one, three, and six-month respectively.

The three series were priced competitively at:
i) 4.80% for USD 200 million for 1-month tenor;
ii) 5.00% for USD 320 million for 3-month tenor; and
iii) 5.00% for USD 220 million for 6-month tenor.

Today’s Ṣukūk reissuance mark’s the IILM’s fourth auction for the year and garnered a strong demand from both Primary Dealers and investors with a combined orderbook of USD 1.7 billion, representing an average bid-to-cover ratio of 231%.

Dr. Umar Oseni, Chief Executive Officer of the IILM, said: “We are pleased with the successful conclusion of today’s transaction that witnessed a healthy coverage ratio across all tenors. Despite the uncertain global market environment coupled with the Federal Reserve raising interest rates for the ninth time in a row just two weeks ago, the IILM’s short-term cross-border Shari’ah-compliant liquidity instruments continue to be in demand among global investors in the Islamic financial services industry.”

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.

Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 3.53 billion through 12 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.