Islamic Finance

IILM concludes second auction for 2021 with highest reissuance amount of $1.35 bln short-term sukuk

Kuala Lumpur, Malaysia – 15 February 2021 - The International Islamic Liquidity Management Corporation (IILM) is pleased to announce that it has successfully completed the auction of USD 1.35 billion short-term Ṣukūk across three different tenors comprising 1-month for USD 400 million at 0.25%, 3-month for USD 500 million at 0.35% and 6-month for USD 450 million at 0.40%.

Today’s second issuance of the year marks another milestone for the IILM as its highest issuance size since inception. The IILM’s engagement and partnership with its Primary Dealers and investors across various jurisdictions have resulted in robust demand for its Ṣukūk in the current low rate market environment.

The tender resulted in significant interest from Middle East based Primary Dealers and both Middle Eastern and Asian investors, with a final orderbook in excess of USD 2.3 billion, representing an average oversubscription rate of 1.8 times.

“Today’s successful auction outcome continues to underscore strong investor confidence in the IILM as global markets and economies face the prolonged impact of Covid-19. We are pleased that with today’s well received milestone placement, which was fully covered in the early minutes of the auction window, the IILM has extended its 2021 track record of successful issuances.” said Dr Umar Oseni, Chief Executive Officer of the IILM.

The total amount of IILM Ṣukūk outstanding is now USD 3.51 billion. The IILM short- term Sukūk programme is rated “A-1” by S&P.

Copyright Press Releases 2021


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