Kuala lumpur: The International Islamic Liquidity Management Corporation (IILM) today announced the reissuance of US$1.353 billion in short-term sukuk, which garnered strong and diverse demand from investors connected with its Islamic financial institutions network.
According to BERNAMA News Agency, the reissuance covered six different tenors, including a two-week tenor priced at 4.0 percent for US$379 million and a one-month tenor at 4.1 percent for US$268 million. The three-month tenor saw US$372 million issued at a rate of 4.2 percent, while the six-month tenor was set at 4.15 percent for US$127 million. Additionally, the nine-month tenor was priced at 4.65 percent for US$94 million, and the twelve-month tenor closed at 4.4 percent for US$113 million.
IILM reported that total orders across the auction reached approximately US$3.284 billion, reflecting an oversubscription rate of 2.43 times the amount initially offered. The institution highlighted that this robust demand demonstrates sustained market confidence in IILM's highly rated short-term instruments and its crucial role in enhancing cross-border liquidity within the Islamic finance sector.
This latest transaction marks IILM's 17th sukuk auction this year, raising the total issuances to US$20.851 billion across 82 sukuk series with varied maturities. All issuances are conducted under IILM's US$8.5 billion short-term sukuk issuance program, rated 'A-1' by SandP Global Ratings and 'F1' by Fitch Ratings.
The distribution of IILM's short-term sukuk is facilitated by an expanding network of 17 primary dealers globally. This network includes prominent institutions such as Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, AlRayan Bank, Boubyan Bank, CIMB Islamic Bank Bhd, and Dukhan Bank. Other key participants include First Abu Dhabi Bank, Golden Global Investment Bank, Jaiz Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic Bhd, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank, Standard Chartered Bank, and Bank Nizwa.