IILM Prices US$1.335 Bln short-term sukuk amid Global Market Volatility

KUALA LUMPUR, April 7 (Bernama) -- The International Islamic Liquidity Management Corporation (IILM) has completed the reissuance of US$1.335 billion in short-term sukuk across five tenors: two weeks, one month, three months, six months and nine months.

In a statement, the global issuer of shariah-compliant short-term liquidity instruments said the five series were competitively priced as 3.90 per cent for US$251 million (two-week); 3.90 per cent for US$432 million (one-month); 3.95 per cent for US$379 million (three-month); 4.00 per cent for US$218 million (six-month); and 3.95 per cent for US$55 million (nine-month).

The auction drew demand from global investors, with bids reaching US$3.061 billion, a strong 2.29 times oversubscription, underscoring continued appetite for IILM’s high-quality, short-term Islamic instruments despite market volatility.

“In today’s market, reliability is not just valued, it is scarce. IILM has stepped into that gap as the only consistent issuer of US dollar-denominated sukuk during this period of heightened uncertainty,” said chief executive officer Mohamad Safri Shahul Hamid.

Since the outbreak of the West Asia conflict, IILM has delivered US$3.55 billion across three auctions, at a time when primary issuance has effectively stalled. 

This has positioned IILM not just as a participant, but as a critical anchor for the global Islamic liquidity market.

As institutions prioritise liquidity resilience, IILM’s role in facilitating cross-border liquidity flows has become even more pronounced. 

At the same time, strong cash positions and sustained demand for carry strategies have kept pricing firm.

With supply largely absent and alternatives limited, demand for IILM sukuk remained consistently strong, reinforcing the importance of our regular issuance in supporting market stability and investor confidence.

“We will continue to issue with discipline and consistency, particularly when markets need certainty the most,” said Mohamad Safri.

Today’s transaction marks IILM’s seventh sukuk auction year-to-date, bringing total issuances in 2026 to US$8.035 billion across 32 sukuk series of varying maturities. 

All issuances were conducted under the IILM’s US$8.5 billion short-term Sukuk Issuance Programme, rated “A-1” by S&P Global Ratings and “F1” by Fitch Ratings.

The IILM short-term sukuk is distributed by a diversified and growing network of 16 primary dealers globally.

They are Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, AlRayan Bank, Boubyan Bank, CIMB Islamic Bank Bhd, Dukhan Bank, 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, and Standard Chartered Bank.

IILM regularly issues short-term sukuk in various tenors and amounts to meet the liquidity needs of institutions offering Islamic financial services. The organisation will continue to reissue its short-term liquidity instruments monthly, as outlined in its issuance calendar.

-- BERNAMA