The IILM issues a total of $800 million sukūk
Kuala Lumpur, Malaysia – 11 March 2020. Today, the International Islamic Liquidity Management Corporation (IILM) conducted its third auction of the year by issuing a total amount of USD 800 million short-term A-1 rated Ṣukūk in three series.
Strong global investor demand led to a total order book of USD 1.47 billion and a bid-to-cover ratio for the three Ṣukūk series of 190%. With over 50 orders from diversified investors, the allocations across all tenors are concentrated within the GCC region accounting to circa 90% in average.
The three issuances have been priced by the market as follows; i) USD 300 million of 1-month tenor at 0.81%; ii) USD 300 million of 3-month tenor at 0.87%; and iii) USD 200 million of 6-month tenor at 0.85%, respectively. The cut-off profit rates across all the Ṣukūk came up far below February 2020 levels by at least 90 bps reflecting the massive decline of the global money-market rates.
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