IILM’s US$800 Mln Short-term Sukuk Oversubscribed 2.3 Times
KUALA LUMPUR, July 22 (Bernama) -- The International Islamic Liquidity Management Corporation (IILM) has reissued a total of US$800 million (US$1=RM4.23) in short-term sukuk across three tenors, with the offering oversubscribed by 2.3 times.
In a statement today, IILM said the auction attracted US$1.9 billion in bids from its network of primary dealers and global investors.
It said the issuance comprised a US$305 million two-week tenor at 4.40 per cent, a US$355 million three-month tenor at 4.49 per cent, and a US$140 million six-month tenor at 4.38 per cent.
“Today’s successful completion of the short-term sukuk transaction marks the IILM’s 13th auction year-to-date with a cumulative issuance of US$13.15 billion across 39 sukuk series of varying tenors,” IILM said.
Chief executive officer Mohamad Safri Shahul Hamid said the outcome reflected continued investor interest in shariah-compliant liquidity instruments, despite prevailing global uncertainties.
“Today’s auction outcome underscores the continued strength of investor demand for high-quality Islamic liquidity instruments, despite ongoing uncertainty surrounding the United States (US) Federal Reserve’s rate trajectory and broader shifts in global monetary policy,” he said.
Mohamad Safri added that financial markets remain cautious as central banks weigh persistent inflationary pressures against signs of moderating economic growth.
“The IILM’s consistent ability to attract strong participation across all tenors reflects the market’s confidence in our sukuk programme as a dependable tool for short-term liquidity management,” he said.
The IILM’s short-term sukuk programme is rated A-1 by S&P Global Ratings and F1 by Fitch Ratings, with a total issuance limit of US$6 billion.
IILM said its sukuk are distributed through a network of primary dealers including Maybank Islamic Bhd, CIMB Islamic Bank Bhd, Abu Dhabi Islamic Bank, Kuwait Finance House, Qatar Islamic Bank, and Standard Chartered Bank.
“The IILM will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar,” it said.
-- BERNAMA