Islamic Finance

The IILM reissues USD 740 million short-term Ṣukūk


The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term Shari’ah-compliant financial instruments, has successfully completed its fourth auction of 2024 with the reissuance of an aggregate USD 740 million short-term Ṣukūk across three different tenors of one, three, and twelve-month respectively.

The three series were priced competitively at:

i)               5.00% for USD 200 million for 1-month tenor;

ii)              5.27% for USD 240 million for 3-month tenor; and

iii)             5.15% for USD 300 million for 12-month tenor.

The IILM’s Ṣukūk reissuance today witnessed a competitive tender among primary dealers and investors from markets across the GCC region as well as Asia, with a combined orderbook in excess of USD 1.7 billion, representing an average bid-to-cover ratio of 230%.

Today’s sukūk reissuance, which marks the IILM’s fourth auction for the year, also featured the IILM’s fifth 12-month tenor since its introduction in 2022.

Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totaling USD 3.61 billion through 12 Ṣukūk series.

The issuance forms part of the IILM’s “A-1” (S&P) and “F1” (Fitch Ratings) rated USD 4 billion short-term Ṣukūk issuance programme.

The IILM’s short-term Sukῡk is distributed by a diversified network of 10 primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Boubyan Bank, CIMB Islamic Bank Berhad, Dukhan Bank, First Abu Dhabi Bank, Kuwait Finance House, Maybank Islamic Berhad, Qatar Islamic Bank, and Standard Chartered Bank.

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 will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.   

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