KUALA LUMPUR: The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term syariah-compliant financial instruments, has completed the reissuance of an aggregate US$1.05 billion short-term sukuk across three different tenors of one, three, and six-month respectively.
The three series were priced competitively at 4.44% for US$400 million for 1-month tenor; 4.45% for US$400 million for 3-month tenor; and 4.4% for US$250 million for 6-month tenor.
The IILM’s sukuk reissuance yesterday saw a competitive tender amongst the primary dealers and investors globally, with a strong orderbook of US$2.5 billion, representing an impressive average bid-to-cover ratio 238%.
IILM CEO Mohamad Safri Shahul Hamid said the outcome of yesterday’s hugely successful auction clearly underscores the unwavering confidence of global Islamic investors in the IILM’s sukuk as high quality syariah-compliant liquidity solutions.
He added the impressive demand across all the tenors, despite all the events that are unfolding globally, clearly reaffirms the critical role their instruments play in providing stability and flexibility for Islamic financial institutions globally.
“The heightened global trade tensions have shifted investors’ preference (from riskier assets) towards safer instruments such as the IILM’s short-term sukuk, evidenced by the robust bid-to-cover ratio that has allowed us to price today’s offerings within our expectations,” said Mohamad Safri.
He added that they are extremely pleased with the success of yesterday’s auction and hopeful that it will pave the way for them to continue fulfilling their mandate in delivering tailored solutions that will help and facilitate global Islamic financial institutions to manage their liquidity positions effectively and proactively.
The issuance forms part of the IILM’s “A-1” (S&P) and “F1” (Fitch Ratings) rated US$6 billion short-term sukuk issuance programme. The total amount of IILM sukuk outstanding stands at US$ 4.14 billion.
The IILM’s short-term sukuk 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 Bhd, Dukhan Bank, First Abu Dhabi Bank, Kuwait Finance House, Maybank Islamic Bhd, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank, and Standard Chartered Bank.
The IILM is a regular issuer of short-term sukuk 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.
