IILM sets a new industry benchmark with historic 2025 issuance volume<\/p>\n
The International Islamic Liquidity Management Corporation (IILM), the world\u2019s leading issuer of Shari\u2019ah-compliant short-term liquidity management instruments, is pleased to announce that it has successfully reissued a total of USD 1.365 billion short-term \u1e62uk\u016bk across four tenors, in its final auction for 2025.
\nThe issuance featured one, three, six, and nine-month tenors, priced competitively as follows:
\ni) 4.00% for USD 330 million for 1-month tenor;
\nii) 4.04% for USD 660 million for 3-month tenor;
\niii) 3.90% for USD 325 million for 6-month tenor; and,
\niv) 3.85% for USD 50 million for 9-month tenor.<\/p>\n
The auction attracted strong demand from the IILM\u2019s network of Primary Dealers and a broad base of institutional investors across multiple jurisdictions, registering total bids of USD 3.31 billion and an average bid-to-cover ratio of 2.43 times \u2014 signalling continued confidence in the IILM\u2019s high-quality short-term liquidity tools.<\/p>\n
This transaction marks the IILM\u2019s twenty-first \u1e62uk\u016bk auction year-to-date, bringing total issuances in 2025 to USD 22.9 billion across 69 series of varying tenors: the highest-ever annual cumulative issuance in the organisation\u2019s history. This latest issuance is conducted under the IILM\u2019s USD 8.5 billion short-term \u1e62uk\u016bk Issuance Programme, which carries ratings of \u201cA-1\u201d from S&P Global Ratings and \u201cF1\u201d from Fitch Ratings.
\nMohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, commented that 2025 has been nothing short of transformational for the IILM. It stands as our most successful year to date across multiple dimensions \u2014 scale, market reach, operational depth, investor engagement and strategic relevance. \u201cThis year, we recorded our highest-ever annual issuance volume at USD 22.9 billion, a 76% increase year-on-year, conducted the most auctions in a single calendar year, and maintained consistently strong bid-to-cover ratios across all tenors. These results reflect both the depth of liquidity within the Islamic financial system and the strengthening role of the IILM as a reliable provider of short-term Shari\u2019ah-compliant instruments.\u201d<\/p>\n
One of the clearest indicators of our rapid expansion is the significant growth in our average monthly issuance size. In 2024, we averaged USD 1.1 billion per month. In 2025, that figure surged to USD 1.9 billion, a remarkable increase that underscores both robust market demand and the IILM\u2019s enhanced capacity to meet the evolving liquidity needs of Islamic financial institutions.<\/p>\n
Safri further highlighted that the IILM\u2019s outstanding short-term \u1e62uk\u016bk portfolio also reached a record high of USD 6.4 billion \u2014 an extraordinary 82% increase from just 18 months ago. \u201cIslamic financial institutions are increasingly relying on the IILM\u2019s \u1e62uk\u016bk as their preferred high-quality liquid assets, which speaks volumes about the trust we have earned and the value we deliver to the global market.\u201d
\nIn addition to the surge in issuance activity, the IILM successfully upsized its \u1e62uk\u016bk Programme to USD 8.5 billion, a milestone that enhances the organisation\u2019s ability to respond swiftly to market developments while reflecting continued confidence from regulators, rating agencies and international stakeholders.<\/p>\n
The introduction of the 9-month tenor this year also marked a notable product enhancement, providing a broader spectrum of high-quality instruments for Islamic financial institutions to manage liquidity with greater precision and confidence.<\/p>\n
\u201cBeyond issuance volumes, 2025 was a year in which our global distribution network expanded meaningfully,\u201d Safri noted. \u201cWe welcomed four new Primary Dealers from diverse jurisdictions including the IILM\u2019s first-ever Primary Dealer from the African continent, further broadening our geographic footprint. Alongside this, we deepened collaboration with our long-standing partners and continued to attract a wider pool of investors across the GCC, Asia and the other markets. These achievements underscore the IILM\u2019s central role in supporting the stability, resilience and efficiency of the international Islamic financial system. We are extremely proud of the progress made, encouraged by the trust placed in us and committed to building on this momentum as we chart our path forward into 2026.\u201d<\/p>\n
The IILM\u2019s short-term Suk\u1fe1k is distributed by a diversified and growing network of primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, AlRayan Bank, Boubyan Bank, CIMB Islamic Bank Berhad, Dukhan Bank, First Abu Dhabi Bank, Golden Global Investment Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic Berhad, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank, and Standard Chartered Bank.<\/p>\n
The IILM is a regular issuer of short-term \u1e62uk\u016bk across varying tenors and amounts 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.<\/p>\n","protected":false},"excerpt":{"rendered":"
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