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The International Islamic Liquidity Management Corporation ( IILM ), an international organization that develops and issues short-term Shariah-compliant financial instruments, has successfully completed the reissuance of an aggregate US$1.285 billion short-term sukuk across four different tenors of one-, three-, six- and twelve-months respectively.
The four series were priced competitively at:
The successful completion of today’s short-term sukuk transaction marks the IILM’s 14th auction year-to-date, bringing total issuances to US$15.66 billion across 46 sukuk series of varying tenors. It also represents the second time that the IILM has offered investors with four distinct tenors within a single auction.
The auction attracted robust participation from the IILM’s network of primary dealers and global investors, generating total bids of US$3.1 billion and achieving a strong average bid-to-cover ratio of 2.4 times.
The issuance forms part of the IILM’s A-1 ( S&P ) and F1 ( Fitch Ratings ) rated US$6 billion short-term sukuk issuance programme.
The corporation’s short-term sukuk 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, Dukhan Bank, First Abu Dhabi Bank, Golden Global Investment Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank and Standard Chartered Bank.
The IILM is a regular issuer of short-term sukuk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services and, it says, it will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.
“Today’s issuance also comes as global markets position ahead of the US Federal Reserve’s anticipated rate cut as early as this month,” says Mohamad Safri Shahul Hamid, IILM’s CEO. “This shift in monetary policy expectations has created a constructive environment for short-term markets, with demand remaining strong across all tenors. Investor interest was particularly pronounced at the longer end of the curve, signalling a clear shift in the sentiment and growing confidence in the rate outlook.”
“The robust demand also coincides with the recent pricing of a highly rated sovereign sukuk issuance by a GCC [Gulf Cooperation Council] issuer, further highlighting the growing appeal of Islamic finance instruments across the curve.”
