IILM reaches historic milestone with USD 1.24bln four-tenor Sukuk
Kuala Lumpur, Malaysia: 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 reissuance of an aggregate USD 1.24 billion short-term Ṣukūk across four different tenors of one, three, six, and twelve-month respectively.
The four series were priced competitively at:
4.65% for USD 485 million for 1-month tenor;
4.40% for USD 310 million for 3-month tenor;
4.42% for USD 285 million for 6-month tenor; and,
4.40% for USD 160 million for 12-month tenor
The successful completion of the short-term Ṣukūk transaction today marks the IILM's eighth auction year-to-date, with cumulative issuances totalling USD 8.21 billion across 24 Ṣukūk series of varying tenors.
The auction saw a competitive tender amongst the Primary Dealers and Investors globally, with a very healthy orderbook of USD 2.65 billion, representing a strong and sustained average bid-to-cover ratio of 214%.
Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: '"Today's transaction marks yet another pivotal and historic milestone for the IILM, as we successfully offered four different tenors – one, three, six, and twelve-month – for the first time in a single auction. This strategic move underscores the IILM's firm commitment to providing greater flexibility and depth in high-quality Shari'ah-compliant short-term liquidity management space, in line with the growing and evolving needs of Islamic financial institutions globally."
The auction saw impressive demand across all the four tenors, despite the ongoing volatility in global rate markets and rising short-term funding costs amid tightening liquidity conditions. Investor appetite remained resilient, bolstered by a renewed risk-on tone, following a joint US-China announcement on reciprocal tariff reductions.
The positive market sentiment exceeded expectations and provided a constructive backdrop for the issuance. As market conditions continue to stabilise, the IILM remains a reliable and trusted provider of high-quality Islamic liquidity management tools for the global Islamic finance community."
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's short-term Sukῡk is distributed by a diversified and growing network of 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, 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.
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 IILM will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.
About the IILM
The International Islamic Liquidity Management Corporation (IILM) is an international organisation established on 25 October 2010 by central banks, monetary authorities and multilateral organisations to develop and issue short-term Shari'ah-compliant financial instruments to facilitate effective cross-border liquidity management for institutions that offer Islamic financial services (IIFS).
The current members of the IILM Governing Board are the central banks and monetary agencies of Indonesia, Kuwait, Malaysia, Mauritius, Nigeria, Qatar, Türkiye, the United Arab Emirates, as well as the multilateral Islamic Corporation for the Development of the Private Sector.
Membership of the IILM is open to central banks, monetary authorities, financial regulatory authorities or government ministries or agencies that have regulatory oversight of finance or trade and commerce, and multilateral organisations.
The IILM is hosted by Malaysia and headquartered in Kuala Lumpur.
Media Enquiries:
The International Islamic Liquidity Management Corporation (IILM)
T: +60(3) 2170 5000
F: +60(3) 2170 5111
E: corpcomm@iilm.com; info@iilm.com
Website: http://www.iilm.com
Please follow us on social media for up-to-date information on the IILM:
Twitter : https://twitter.com/theiilm
Linked in : https://www.linkedin.com/company/theiilm
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