Today’s auction also witnessed the participation of two African financial institutions for the very first time, both from Nigeria – an Islamic bank and a conventional bank – reflecting the growing global appeal of the IILM’s short-term Islamic papers

Kuala Lumpur, Malaysia – 5 November 2024

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

The three series were priced competitively at:
i) 4.78% for USD 550 million for 1-month tenor;
ii) 4.67% for USD 570 million for 3-month tenor; and
iii) 4.51% for USD 190 million for 6-month tenor.

The latest Ṣukūk issuance marks the IILM’s twelfth auction for the year and its largest issuance size year-to-date. Today’s auction also witnessed a competitive tender among Primary Dealers and investors from markets across the GCC, Asia, and Africa, with a combined orderbook in excess of USD 2.75 billion, representing an average bid-to-cover ratio of 210%.

Mr. Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “We are extremely pleased with the outcome of the IILM’s largest issuance year-to-date, ahead of possibly one of the most important days in 2024. Today’s auction saw a strong and solid demand from global Islamic investors seeking high quality safe-haven liquidity management instruments, as reflected by a healthy bid-to-cover ratio across all three tenors on offer.

Today’s auction also witnessed the participation of two African financial institutions for the very first time, both from Nigeria – an Islamic bank and a conventional bank – reflecting the growing global appeal of the IILM’s short-term Islamic papers.”

Year-to-date, the IILM has issued a cumulative USD 11.82 billion across 36 Ṣukūk series. 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 total amount of IILM Ṣukūk outstanding is now USD 4 billion.
 

The IILM regularly issues short-term Ṣukūk across 1-month, 3-month, 6-month, and 12-month tenors 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.

The IILM’s short-term Sukῡk is currently distributed by a diversified network of 11 primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, Boubyan Bank, CIMB Islamic Bank Berhad, Dukhan Bank, First Abu Dhabi Bank, Kuwait Finance House, Maybank Islamic Berhad, Qatar Islamic Bank, and Standard Chartered Bank.