Press Release

Kuala Lumpur, Malaysia – 14 January 2025.

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 first auction for 2025 with a reissuance of an aggregate USD 1.27 billion short-term Ṣukūk across three different tenors of one, three, and six-month respectively.

The three series were priced competitively at:

i) 4.43% for USD 500 million for 1-month tenor;

ii) 4.55% for USD 610 million for 3-month tenor; and,

iii) 4.43% for USD 160 million for 6-month tenor.

The IILM’s Ṣukūk reissuance today saw a competitive tender amongst the Primary Dealers and Investors globally, with a strong orderbook of USD 2.75 billion, representing an average bid-to-cover ratio of 216.5%.

Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “We are delighted to kick off 2025 from where we left off last year with a successful auction, reflecting sustained market confidence in the IILM’s short-term Ṣukūk as highquality Shari’ah-compliant liquidity management tools. The strong and robust demand across all tenors underscores the global Islamic investors’ appetite, for stable and reliable liquidity solutions amidst the ongoing market volatility and market uncertainty in recent weeks.”

“The sell-off in the global bond market since the beginning of the month has intensified further post-strong US job report that was out last week, resulting in a recent surge in global yields. Despite all these, we welcome today’s auction results at competitive profit rates (compared to December 2024), with twice the size of total issuance month-on-month. For the record, today’s transaction totalling USD 1.27 billion also represents the IILM’s largest ever short-term Ṣukūk auction in the month of January, clearly reinforcing our strong commitment to deliver innovative short-term Ṣukūk offerings tailored to meeting the evolving needs of Islamic financial institutions worldwide".

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 total amount of IILM Ṣukūk outstanding stands at USD 4.14 billion.

The IILM’s short-term Sukῡk is distributed by a diversified and growing network of 12 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, 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.

-- end --