Kuala Lumpur, Malaysia – 6 August 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 reissuance of an aggregate USD 1.26 billion short-term Ṣukūk across three different tenors of one, three, and six-month respectively.

The three series were priced competitively at:

i)                    5.15% for USD 340 million for 1-month tenor;

ii)                  5.17% for USD 540 million for 3-month tenor; and

iii)                5.00% for USD 380 million for 6-month tenor.

Today’s Ṣukūk reissuance, which marks the IILM’s eight auction for the year, witnessed a competitive tender among Primary Dealers and investors from markets across the GCC, Europe, Asia, as well as Africa. The profit rates for both the 1-month and 3-month tenors came up tighter than the IILM’s indicative pricing guidance, while the profit rate for the 6-month tenor fell within the pricing guidance range.

 Mr. Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “The combined orderbook in excess of USD 2.91 billion represents an average bid-to-cover ratio of 231%, which is also the largest orderbook year-to-date. Today’s auction also witnessed the participation of new investors from across the GCC and Asia, namely an Oman-based bank, a Qatari bank, and asset managers from Singapore and Malaysia respectively. The increased participation by investors demonstrates the safe haven status of the IILM Ṣukūk in a highly volatile market environment.”

 Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 7.89 billion through 24 Ṣukūk series. The issuance forms part of the IILM’s “A-1” (S&P) and “F1” (Fitch Ratings) rated USD 4 billion short-term Ṣukūk issuance programme.

 The IILM’s short-term Sukῡk is 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.

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 total amount of IILM Ṣukūk 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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