The International Islamic Liquidity Management Corporation (IILM), an international organization that develops and issues short-term shariah-compliant financial instruments, has successfully completed its fifth auction of 2024 with the reissuance of an aggregate US$1.03 billion short-term sukuk across three different tenors of one, three and six months.
The three series were priced competitively at 5.30% for US$250 million for the one-month tenor, 5.33% for US$500 million for the three-month tenor and 5.25% for US$280 million for the six-month tenor.
The sukuk reissuance witnessed a competitive tender among primary dealers and investors from markets across the Gulf Cooperation Council (GCC) region as well as Asia, with a combined orderbook in excess of US$2.51 billion.
Further to this reissuance, the IILM, an organization set up by the multinational Islamic Financial Services Board with strong support from the Malaysian authorities, has achieved year-to-date cumulative issuances totalling US$4.64 billion through 15 sukuk series. The issuance forms part of the IILM’s S&P A-1- and Fitch F1-rated US$4 billion short-term sukuk issuance programme.
“With global investors continuously searching for high quality Shariah-compliant liquidity solutions, we are pleased with today’s successful conclusion of the IILM’s fifth auction for the year,” says Mohamad Safri, the organization’s CEO. “Despite the changing expectations surrounding the Federal Reserve’s decision on interest rates, we witnessed a healthy average bid-to-cover ratio of 244% across all three tenors, reflecting a booming demand for our short-term Islamic papers.”
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