The IILM concludes reissuance of USD 980 million short-term Ṣukūk

FOR IMMEDIATE RELEASE                                                                          

Kuala Lumpur, Malaysia – 5 March 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 third auction of 2024 with the reissuance of an aggregate USD 980 million short-term ukūk across three different tenors of one, three, and six-month respectively.

The three series were priced competitively at:

                       i)                  5.39% for USD 450 million for 1-month tenor;

                      ii)                 5.35% for USD 280 million for 3-month tenor; and

                      iii)                5.30% for USD 250 million for 6-month tenor.


The IILM’s ukūk reissuance today witnessed a competitive tender among Primary Dealers and investors from the markets across the GCC region as well as Asia, with a strong orderbook in excess of USD 1.86 billion.

Mr. Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “The successful conclusion of the IILM’s short-term ukūk issuance in March across three different tenors with a strong average bid-to-cover ratio of 190% reflects the competitive nature of the IILM’s Islamic papers, while robust demand across all tenors reaffirms a stable pricing environment. We are pleased with the consistent relative spreads against benchmark rates in comparison to Term SOFR for the 1M, 3M and 6M durations.”

“Despite the resurgence of Global ukūk issuances and the market’s shifting expectations on rates, today’s auction also witnessed several new investors participating at primary level for the first time. This underscores the global cross-border appeal of the IILM’s short-term ukūk and our commitment to support the growth of the global Islamic financial system,” added Mr. Safri.

Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 2.87 billion through nine ukūk series.

The issuance forms part of the IILM’s “A-1” (S&P) and “F1” (Fitch Ratings) rated USD 4 billion short-term ukūk issuance programme.

The IILM’s short-term Sukk 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 ukūk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services. The total amount of IILM ukūk 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.


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