Malaysia-based International Islamic Liquidity Management Corporation (IILM) has issued three short-term A-1 rated sukuk for a total amount of $1.06 billion.
The issuance came in three tranches as follows: $300 million one-month sukuk were offered at 1.15 percent, $460 million three-month and $300 million six-month series were offered at 1.55 percent and 1.73 percent, respectively.
Initial mid-pricing guidance was 7 basis points higher for the 6-month tranche and 10 basis points higher for the shorter tranches.
According to IILM, the auction drew more than $1.85 billion in demand with an average bid-to-cover ratio for the three tranches of 175 percent, a 16 percent increase of the order book since last month’s issuances.
“Despite the headwinds linked to the Coronavirus pandemic, the oil price slump and tightening liquidity across all the asset classes, the IILM remains committed to offer multiple short-term alternatives to provide high quality Shariah-compliant liquidity instruments to the market,” IILM said in a statement.
The IILM’s sukuk issuances since 2013 have amounted so far to over $53 billion. The total of IILM sukuk outstanding stands at $2.51 billion with a Shariah tradability ratio of 71% tangible assets.
(Writing by Gerard Aoun, editing by Seban Scaria)
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