Despite the changing expectations surrounding the Federal Reserves’ decision on interest rates, we witnessed a healthy average bid-to-cover ratio of 244% across all three tenors, reflecting a booming demand for the IILM’s short-term Islamic papers

Kuala Lumpur, Malaysia – 7 May 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 its fifth auction of 2024 with the reissuance of an aggregate USD 1.03 billion short-term Ṣukūk across three different tenors of one, three, and six-month respectively.

The three series were priced competitively at:
i) 5.30% for USD 250 million for 1-month tenor;
ii) 5.33% for USD 500 million for 3-month tenor; and
iii) 5.25% for USD 280 million for 6-month tenor.

The IILM’s Ṣukūk reissuance today witnessed a competitive tender among Primary Dealers and investors from markets across the GCC region as well as Asia, with a combined orderbook in excess of USD 2.51 billion.

Mr. Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “With global investors continuously searching for high quality Shari’ah-compliant liquidity solutions, we are pleased with today’s successful conclusion of the IILM’s fifth auction for the year. Despite the changing expectations surrounding the Federal Reserves’ decision on interest rates, we witnessed a healthy average bid-to-cover ratio of 244% across all three tenors, reflecting a booming demand for the IILM’s short-term Islamic papers.”

Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 4.64 billion through 15 Ṣukūk series.

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.

The IILM’s short-term Sukῡk is distributed by a diversified network of 10 primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, 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.

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 will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.