The IILM's $710mln short-term Sukūk oversubscribed by 2.15 times
The two series were priced competitively at:
4.40% for USD 310 million for 1-month tenor; and,
4.45% for USD 400 million for 3-month tenor.
The short-term Ṣukūk transaction today marks the second auction for the month of February and saw a competitive tender amongst the Primary Dealers and Investors globally, with a strong orderbook of USD 1.53 billion, representing an impressive average bid-to-cover ratio 215%.
Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: 'with today's auction bringing the total for the month of February to a substantial USD 1.76 billion, we are pleased to see continued strong demand for the IILM's short-term Sukūk. The oversubscription rate reflects deep investor confidence in the IILM's ability to consistently deliver high-quality, Shari'ah-compliant solutions in dynamic market conditions.'
The second auction of February witnessed an increase in supply of the IILM short-term Sukūk by an additional USD 50 million, which further demonstrates the IILM's dedication to meeting growing demand for high-quality Islamic papers. This demand has been fueled by the mildly hawkish tone of the Federal Reserve recently, which has led investors to seek safe and reliable investment opportunities.
Additionally, the onboarding of two new Primary Dealers, Golden Global Investment Bank and Kuwait International Bank, brings the total number of Primary Dealers to 14. This expansion is a strategic move aimed at broadening the IILM's market footprint, strengthening its service to investors, and advancing the growth of the Islamic finance industry as a whole.
'We are encouraged by the competitive pricing and diverse participation in today's auction, underscoring the IILM's solid partnerships with an expanding network of Primary Dealers and investors worldwide. As we continue to innovate and enhance our offerings, we remain firmly committed to advancing resilient liquidity solutions for the global Islamic finance industry and are confident of ensuring a robust and meaningful supply of high-quality short-term Ṣukūk for the benefit of the Islamic financial institutions globally', Safri added.
The issuance forms part of the IILM's 'A-1' (S&P) and 'F1' (Fitch Ratings) rated USD 6 billion short-term Ṣukūk issuance programme. The total amount of IILM Ṣukūk outstanding currently stands at USD 4.19 billion.
The IILM's short-term Sukῡk is distributed by a diversified and growing network of primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, Boubyan Bank, CIMB Islamic Bank Berhad, Dukhan Bank, First Abu Dhabi Bank, Golden Global Investment Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic Berhad, Meethaq Islamic Banking from Bank Muscat, 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 IILM will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.
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, Malaysia, Mauritius, Nigeria, Qatar, Türkiye, 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.
Media Enquiries:
The International Islamic Liquidity Management Corporation (IILM)
E: corpcomm@iilm.com; info@iilm.com
Website: http://www.iilm.com
Please follow us on social media for up-to-date information on the IILM:
Twitter : https://twitter.com/theiilm
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