The upsizing of the Ṣukūk programme to USD 6 billion reflects the growing and sustainable demand for high quality Ṣukūk issued by the IILM, which has seen oversubscription rates exceeding 220% year-to-date. It also reinforces the IILM’s status as a unique provider of Islamic safe-haven liquidity management instruments, vital for institutions seeking Shari’ah-compliant High-Quality Liquid Assets (HQLA)

Kuala Lumpur, Malaysia – 22 August 2024

The International Islamic Liquidity Management Corporation (IILM), a key global Islamic financial institution responsible for developing Shari’ah-compliant liquidity management instruments, proudly announces a significant expansion of its Ṣukūk Programme, raising the ceiling from USD 4 billion to USD 6 billion.

Mr. Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, remarked: “We are delighted to have successfully completed the upsizing of the IILM Ṣukūk Programme by 50% from USD 4 billion to USD 6 billion. This increase will allow us to add more high-quality assets and inevitably help strengthen our mandate and role in facilitating effective cross-border liquidity management amongst institutions offering Islamic financial services, in particular.”

The IILM’s outstanding Ṣukūk in the market has reached USD 4 billion, its highest ever in the market since the inception of the IILM Ṣukūk Programme in 2013, on the back of a fresh issuance of USD 490 million Ṣukūk that concluded on 21st August 2024.

He continued, “The upsizing of the Ṣukūk programme to USD 6 billion reflects the growing and sustainable demand for high quality Ṣukūk issued by the IILM, which has seen oversubscription rates exceeding 220% year-to-date. It also reinforces the IILM’s status as a unique provider of Islamic safe-haven liquidity management instruments, vital for institutions seeking Shari’ah-compliant High-Quality Liquid Assets (HQLA).”

The IILM’s ongoing commitment to innovation and impact continues to bolster the liquidity management capabilities of Islamic Financial Institutions. By providing highly rated tools that are increasingly traded in secondary markets, the IILM helps these institutions meet their Liquidity Coverage Ratio (LCR) requirements while offering sustainable returns.

“We extend our deepest gratitude to our central bank members, growing global network of Primary Dealers, and stakeholders worldwide, whose unwavering support has been instrumental in propelling the IILM’s Ṣukūk Programme forward. Their trust and collaboration have been vital in strengthening the Islamic finance ecosystem, especially in today’s complex and volatile market environment,” Safri added.

The IILM consistently issues short-term Ṣukūk across 1-month, 3-month, 6-month, as well as 12-month tenors, tailored to the liquidity needs of Islamic financial institutions. Since its inaugural issuance in 2013, the IILM has successfully issued over USD 109.32 billion in Ṣukūk across 260 series.

Rated “A-1” by S&P Global Ratings and “F1” by Fitch Ratings, the IILM’s USD 6 billion Ṣukūk Programme continues to be distributed by a diverse network of 11 primary dealers globally, including 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.