Islamic Finance

IILM reissues $460 million sukuk

Kuala Lumpur, Malaysia – 27 November 2019. Today, the International Islamic Liquidity Management Corporation (IILM) has successfully reissued USD 460 million A-1 short-term Sukūk with 4-month tenor for the first time since 2017 at a profit rate of 1.92%.

Main Highlights of USD 460 million Sukūk Reissuance

1. The IILM Sukūk curve saw a new tenor offered this year. A 4-month Sukūk has been issued in a second auction in the month of November 2019, and it complements the IILM curve starting from 2-week Sukūk to 6-month Sukūk offered in 2019.

2. The demand for the Sukūk series reached a bid-to-cover ratio of 179% with an order book of USD 825 million.

3. The IILM 4-month Sukūk was priced at 1.92% under the competitive auction methodology, compared to the indicative pricing guidance range of 1.93%-1.99%.

4. Purchases by Islamic Primary Dealers (PDs) in the primary auction amounted to 91% of the total amount issued today.

5. In terms of geographical distribution, the allocation of the 4-month IILM Sukūk is distributed across GCC and Asia regions, to 56% and 44%, respectively of the amount issued.

6. The IILM has issued a total amount of circa USD 8.60 billion through 28 Sukūk year-to-date and offering 7 tenors from 2-week up to 6-month.

The following Primary Dealers have participated in the auction conducted under the competitive bidding of the Bloomberg AUPD Platform, sorted by alphabetical order:

1. Abu Dhabi Islamic Bank;

2. Al Baraka Turk;

3. Barwa Bank;

4. Boubyan Bank;

5. CIMB Islamic;

6. First Abu Dhabi Bank;

7. Kuwait Finance House;

8. Maybank Islamic;

9. Qatar Islamic Bank; and

10. Standard Chartered Bank.

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