As the market continues to adjust to a new environment with the long-awaited US Federal Reserve rate cut of 50-basis points last month, the IILM is extremely pleased with the outcome of the latest auction, which saw a strong and well supported demand for the short-term Islamic papers

Kuala Lumpur, Malaysia – 23 October 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 1.14 billion short-term Ṣukūk across three different tenors of one, three, and twelve-month respectively.

The three series were priced competitively at:
i) 4.90% for USD 490 million for 1-month tenor;
ii) 4.80% for USD 430 million for 3-month tenor; and
iii) 4.15% for USD 220 million for 12-month tenor.

The latest Ṣukūk issuance marks the IILM’s eleventh auction for the year, as well the third time the 12-month tenor was offered in 2024.

The IILM’s Ṣukūk reissuance today witnessed a competitive tender among Primary Dealers and investors from markets across the GCC and Asia, with a combined orderbook in excess of USD 2.43 billion, representing an average bid-to-cover ratio of 213%.

Mr. Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “As the market continues to adjust to a new environment with the long-awaited US Federal Reserve rate cut of 50-basis points last month, the IILM is extremely pleased with the outcome of the latest auction, which saw a strong and well supported demand for the short-term Islamic papers. This is clearly evidenced by the solid bid-to-cover ratios across all the three tenors. The IILM’s short-term Ṣukūk continues to be one of the most sought-after Islamic liquidity management solutions for many global institutions with appetite for Shari’ah-compliant instruments.”

Year-to-date, the IILM has issued a cumulative USD 10.51 billion across 33 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 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.