PETALING JAYA: 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$1.26 billion (RM5.67 billion) short-term sukuk across three different tenors of one, three, and six months respectively.
The three series were priced at 5.15% for US$340 million for one-month tenor, 5.17% for US$540 million for three-month tenor and 5% for US$380 million for six-month tenor.
Yesterday’s sukûk reissuance, which marks IILM’s eighth auction for the year, witnessed a competitive tender among primary dealers and investors from markets across the Gulf Cooperation Council (GCC), Europe, Asia and Africa.
The profit rates for both the one-month and one-month tenors came up tighter than IILM’s indicative pricing guidance, while the profit rate for the six-month tenor fell within the pricing guidance range.
IILM CEO Mohamad Safri Shahul Hamid said: “The combined order book in excess of US$2.91 billion represents an average bid-to-cover ratio of 231%, which is also the largest order book year-to-date.”
Yesterday’s auction, he added, 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 sukûk in a highly volatile market environment,” said Mohamad Safri.
Further to the reissuance, IILM has achieved year-to-date cumulative issuances totaling US$7.89 billion through 24 sukûk series.
The issuance forms part of the IILM’s “A-1” and “F1” ( (S&P and Fitch Ratings, respectively) rated US$4 billion short-term sukûk issuance programme.
IILM’s short-term sukῡk is distributed by a network of 11 primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, Boubyan Bank, CIMB Islamic Bank, Dukhan Bank, First Abu Dhabi Bank, Kuwait Finance
House, Maybank Islamic, Qatar Islamic Bank and Standard Chartered Bank.
IILM is a regular issuer of short-term sukûk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services. The total amount of IILM sukûk outstanding is now US$3.51 billion.
