IILM Reissues Its Largest Year-To-Date Short-Term Ṣukuk Of US$1.31 Bln

KUALA LUMPUR, Nov 5 (Bernama) -- The International Islamic Liquidity Management Corporation (IILM) has completed the reissuance of an aggregate US$1.31 billion (US1=RM4.34) short-term sukuk with tenors of one month, three months, and six months.

In a statement today, IILM said the three series were priced competitively -- 4.78 per cent for US$550 million (one-month tenor); 4.67 per cent for US$570 million (three-month tenor); and 4.51 per cent for US$190 million (six-month tenor).

"The latest sukuk issuance marks the IILM’s 12th auction for the year and its largest issuance size year-to-date. 

"Today’s auction also witnessed a competitive tender among primary dealers and investors from markets across the Gulf Cooperation Council nations, Asia, and Africa, with a combined orderbook in excess of US$2.75 billion, representing an average bid-to-cover ratio of 210 per cent," it said.

IILM chief executive officer Mohamad Safri Shahul Hamid said today's auction saw strong and solid demand from global Islamic investors seeking high-quality safe-haven liquidity management instruments, as reflected by a healthy bid-to-cover ratio across all three tenors on offer.

"Today's auction also witnessed the participation of two African financial institutions for the very first time,  an Islamic bank and a conventional bank from Nigeria, reflecting the growing global appeal of the IILM’s short-term Islamic papers," he added.

Year-to-date, IILM has issued a cumulative US$11.82 billion across 36 sukuk series.

The issuance is part of IILM’s “A-1” (S&P) and “F1” (Fitch Ratings)-rated US$6 billion short-term sukuk issuance programme. The total amount of IILM outstanding sukuk is now at US$4 billion.

The IILM regularly issues short-term sukuk with tenors of one month, three months, six months, and 12 months to cater to the liquidity needs of institutions offering Islamic financial services.

Its short-term sukuk 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 Bhd, Dukhan Bank, First Abu Dhabi Bank, Kuwait Finance House, Maybank Islamic Bhd, Qatar Islamic Bank, and Standard Chartered Bank.

-- BERNAMA