Kuala Lumpur, Malaysia: The International Islamic Liquidity Management Corporation (IILM) announced that it has successfully completed the auction of USD 1.15 billion short-term Ṣukūk across three series comprising 1-month USD 400 million priced at 0.28%, 3-month USD 500 million at 0.40% and 6-month USD 250 million at 0.40%.
The issuance marks the first transaction for 2021 and forms part of the IILM’s “A-1” rated USD4.0 billion short-term issuance programme. The auction garnered favourable demand from both Primary Dealers and investors with a combined orderbook in excess of USD 2,079 million, representing an average oversubscription ratio of 1.8 times.
“We are very pleased to open the year with the successful auction of USD1.15 billion short-term Ṣukūk. The transaction’s coverage ratio and its competitive yield continue to reflect confidence and positive sentiment from Primary Dealers and investors despite on-going uncertainty associated with the global Covid-19 pandemic. The IILM remains focused on staying vigilant and resilient during this period to ensure seamless delivery of our mandate as a frequent issuer of Shari’ah-compliant liquidity instruments.” said Dr Umar Oseni, Chief Executive Officer of the IILM.
In terms of investor diversification, the inaugural transaction for 2021 enjoyed strong sponsorship from both GCC and Asia based Islamic Primary Dealers.
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.
“Based on our indicative issuance calendar, the IILM envisages issuing in excess of USD1.0 billion short-term Ṣukūk for nearly every month in 2021.” added Dr Umar.
The IILM’s short-term Sukūk programme is rated “A-1” by S&P with current outstanding issuance size amounting to USD3.51 billion.
About the IILM
The International Islamic Liquidity Management Corporation (IILM) is an international organisation established on 25 October 2010 by central banks, monetary authorities and multilateral organisations to develop and issue short-term Shari’ah-compliant financial instruments to facilitate effective cross-border liquidity management for institutions that offer Islamic financial services (IIFS).
The current members of the IILM Governing Board are the central banks and monetary agencies of Indonesia, Kuwait, Luxembourg, Malaysia, Mauritius, Nigeria, Qatar, Turkey, the United Arab Emirates, as well as the multilateral Islamic Corporation for the Development of the Private Sector.
Membership of the IILM is open to central banks, monetary authorities, financial regulatory authorities or government ministries or agencies that have regulatory oversight of finance or trade and commerce, and multilateral organisations.
The IILM is hosted by Malaysia and headquartered in Kuala Lumpur.
© Press Release 2021
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