The International Islamic Liquidity Management Corporation (IILM) has seen huge investor interest in its short-term sukuk reissuance worth $1.285 billion amid anticipated interest rate cuts.

Total bids logged during the offering reached $3.1 billion, the global body that oversees Shariah-compliant financial instruments, said on Tuesday.

The issuance had four different maturities (one, three six and 12 months) in a single auction.

It came as the markets anticipate a reduction in interest rates by the US Federal Reserve this month.

"This shift in monetary policy expectations has created a constructive environment for short-term markets, with demand remaining strong across all tenors," said Mohamad Safri Shahul Hamid, CEO of the IILM.

"The robust demand also coincides with the recent pricing of a highly rated sovereign sukuk issuance by a GCC issuer, further highlighting the growing appeal of Islamic finance instruments."

The IILM is an international organisation established by central banks and monetary authorities. It develops and issues financial instruments to help Islamic financial institutions manage cash flows across various countries.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com