Today’s auction also witnessed a competitive tender among Primary Dealers and investors from markets across the GCC and Asia with a combined orderbook in excess of USD 1.05 billion, representing an average bid-to-cover ratio of 209%.

November 20, 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 issuance of three new short-term Ṣukūk worth a total of USD 500 million. The IILM’s total outstanding Ṣukūk in the market now stands at USD 4.5 billion.

The issuance, spread across one-month, three-month, and six-month tenors, were priced competitively at:

1. 4.80% for USD 280 million for 1-month tenor;
2. 4.68% for USD 160 million for 3-month tenor; and
3. 4.60% for USD 60 million for 6-month tenor.

The latest Ṣukūk issuance marks the IILM’s thirteenth auction for the year and second for the month of November. Today’s auction also witnessed a competitive tender among Primary Dealers and investors from markets across the GCC and Asia with a combined orderbook in excess of USD 1.05 billion, representing an average bid-to-cover ratio of 209%.

Mr. Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “We are extremely pleased with the outcome of this latest auction (the second for this month), bringing the IILM’s outstanding asset portfolio to an all-time high of USD 4.5 billion.

Despite the continued market uncertainty and reaction surrounding the new leadership in the US as well as the Federal Reserve’s rate cuts’ impact on global capital markets, the IILM’s fresh issuance today represents a significant milestone as we ramp up and diversify our asset portfolio further with the inclusion of a new asset obligor. 

The increase in the IILM’s asset portfolio will enable us to gradually expand the size of its short-term Ṣukūk from USD 1 billion a month in average currently, in line with its core mandate to meet and fulfil the growing needs of the global Islamic financial institutions, in search of stable and reliable sources of high-quality liquidity management instruments". 

Year-to-date, the IILM has issued a cumulative USD 12.32 billion across 39 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 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.