IILM reissues $1.21 billion short-term “A-1” rated sukuk

The International Islamic Liquidity Management Corporation (IILM) has successfully reissued a total of USD 1.21 billion short-term “A-1” rated Ṣukūk across three different tenors of one, three, and six-month respectively.

The three series were priced competitively at:

i)                0.24% for USD 450 million for 1-month tenor;

ii)               0.44% for USD 560 million for 3-month tenor; and

iii)              0.61% for USD 200 million for 6-month tenor.

Today’s Ṣukūk reissuance marks the IILM’s second Ṣukūk auction for 2022. The auction garnered strong demand among the GCC-based Islamic Primary Dealers and investors, and the competitive tender witnessed a strong orderbook in excess of USD 1.83 billion, representing an average bid-to-cover ratio of 152%.

Dr. Umar Oseni, Chief Executive Officer of the IILM, said: “Today’s auction saw a strong interest for the 1-month and 3-month tenors of the IILM’s papers, on the backdrop of a global rise in interest rates and tighter policy by the Federal Reserve. Overall, we are pleased that the IILM’s issuance this month for all tenors were fully subscribed at a competitive all-in profit rates, despite the current market condition on the back of geopolitical developments all around the world. The IILM continues to provide investors with an international safe-haven investment solution to manage their liquidity needs in the Islamic markets with sufficient flexibility.”

Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 2.21 billion through six Ṣukūk series. The IILM will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.

The IILM is a regular issuer of short-term Ṣukūk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services. The total amount of IILM Ṣukūk outstanding is now USD 3.51 billion. The IILM short-term Ṣukūk programme is rated “A-1” by S&P.