Islamic Finance

The IILM issues $900 million sukuk   

Kuala Lumpur, Malaysia – 8 September 2020 - Today, the International Islamic Liquidity Management Corporation (IILM) has successfully conducted an auction for a total issuance of USD 900 million short-term A-1 rated Ṣukūk in two series of 1-month and 3-month tenors, respectively. 

The two issuances were priced by the market as follows; i) USD 400 million of 1-month tenor at 0.22%; and ii) USD 500 million of 3-month tenor at 0.43%, respectively. The final profit rates of the two series lie below and within the indicative pricing guidance for the 1-month and 3-month series, respectively. This demonstrates an increasing interest in high quality Ṣukūk from Primary Dealers and investors.

The tender resulted in significant demand from Asian and Middle Eastern investors, with an orderbook that closed in excess of USD 1.59 billion, representing an average oversubscription rate of 1.77 times.

With frequent monthly issuances throughout the year, the IILM has achieved a total cumulative issuance amount of USD 8.37 billion year-to-date, amongst which USD 1.04 billion are new issuances. This represents around 30% of the USD-denominated Ṣukūk year-to-date globally. The IILM is committed to issuing regularly Shariah compliant liquidity instruments to satisfy the market demand and investors’ needs. 

The IILM short-term Sukūk programme is rated “A-1” by S&P. The total of IILM Ṣukūk outstanding is USD 3.0 billion.

 Copyright Press Releases 2020


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