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Kuala Lumpur, Malaysia: The International Islamic Liquidity Management Corporation (IILM) has reached a new milestone with the successful issuance of three new Ṣukūk worth a total of USD 490 million. This latest issuance brings the IILM’s total outstanding Ṣukūk to its highest ever level of USD 4 billion.
The issuance, spread across one-month, three-month, and six-month tenors, reflects the IILM’s ongoing commitment to providing high-quality liquidity management tools to the global Islamic financial market.
The three series were priced competitively at:
- 5.40% for USD 240 million for 1-month tenor;
- 5.20% for USD 150 million for 3-month tenor; and
- 5.00% for USD 100 million for 6-month tenor.
The latest Ṣukūk issuance marks the IILM’s ninth auction for the year as well as its second in August.
Mr. Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “Today’s new Ṣukūk issuance represents a significant milestone for the IILM, as we expand our portfolio to include a new highly rated underlying asset, for the first time since 2020 (rated AA- internationally). This brings the IILM’s total outstanding Ṣukūk to USD 4 billion, which is the highest ever since the inception of the IILM Ṣukūk Programme in 2013.
The IILM's two Ṣukūk issuances in August 2024 totalled USD 1.75 billion, which represents the biggest total monthly issuance recorded by the IILM in 2024. This further underscores the strong and growing market confidence in the IILM’s high-quality Islamic papers, as evident by the steady increase in the number of new investors, including from a new Islamic account from Indonesia for today’s issuance.”
Despite a volatile market environment, characterized by uncertainty surrounding the Federal Reserve’s upcoming interest rate decisions, today’s auction attracted robust interest from Primary Dealers and investors across the GCC, Europe, Asia, and Africa. The combined orderbook exceeded USD 1.06 billion, resulting in an impressive average bid-to-cover ratio of 217%.
Year-to-date, the IILM has issued a cumulative USD 8.38 billion across 27 Ṣukūk series. The IILM’s short-term Ṣukūk programme holds strong ratings of “A-1” from S&P Global Ratings and “F1” from Fitch Ratings.
The IILM regularly issues short-term Ṣukūk across 1-month, 3-month, 6-month, and 12-month tenors to cater to the liquidity needs of institutions offering Islamic financial services.
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.
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.
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