Latest news with #LiquidityManagement
Zawya
a day ago
- Business
- Zawya
The IILM's USD800mln short-term Ṣukūk oversubscribed by 2.3 times
Kuala Lumpur, Malaysia. The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term Shari'ah-compliant financial instruments, has successfully completed the reissuance of an aggregate USD 800 million short-term Ṣukūk across three different tenors of two-week, three-month, and six-month respectively. The three series were priced competitively at: 4.40% for USD 305 million for 2-week tenor; 4.49% for USD 355 million for 3-month tenor; and, 4.38% for USD 140 million for 6-month tenor Today's successful completion of the short-term Ṣukūk transaction marks the IILM's thirteenth auction year-to-date with a cumulative issuance of USD 13.15 billion, across 39 Ṣukūk series of varying tenors. The auction attracted robust participation from the IILM's network of Primary Dealers and global investors, generating total bids of USD 1.9 billion and achieving a strong average bid-to-cover ratio of 2.3 times. Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, commented: 'Today's auction outcome underscores the continued strength of investor demand for high-quality Islamic liquidity instruments, despite ongoing uncertainty surrounding the US Federal Reserve's rate trajectory and broader shifts in global monetary policy. Market participants remain cautious as central banks weigh persistent inflationary pressures against signs of moderating economic growth. 'The IILM's consistent ability to attract strong participation across all tenors reflects the market's confidence in our Ṣukūk programme as a dependable tool for short-term liquidity management. As global financial conditions remain uneven, the role of stable and Shari'ah-compliant instruments such as ours will become increasingly vital.' 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 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, AlRayan 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.
Zawya
26-06-2025
- Business
- Zawya
Fitch rates International Islamic Liquidity Management 2 SA's ABCP 'F1sf'
RELATED TOPICS ISLAMIC FINANCE RELATED COMPANIES International Is Intl Islamic LM2 Fitch Ratings - Tokyo - Fitch Ratings has assigned ratings to the trust certificates issued by International Islamic Liquidity Management 2 SA's (IILM 2 SA) asset-backed commercial paper (ABCP) programme as follows: USD510 million Series 250031 certificates (XS3102035998): 'F1sf' USD290 million Series 250032 certificates (XS3102037184): 'F1sf' USD225 million Series 250033 certificates (XS3102040485): 'F1sf' Transaction Summary IILM 2 SA is a Luxembourg societe anonyme incorporated in 2013 to issue short-term US dollar-denominated trust certificates with maturities of up to 364 days. The programme size is USD6 billion and the outstanding certificates total USD5.70 billion. KEY RATING DRIVERS Credit Link to Assets: The underlying assets introduce credit risk to the programme, although they are required to meet eligibility criteria at purchase, including a minimum 'A' rating by Fitch. The programme is effectively exposed to five risk presenting entities (RPEs), while the current underlying asset pool incorporates 12 sukuk. Fitch's approach to the five RPEs in this transaction is based on the Asset-Backed Commercial Paper Rating Criteria, which stipulate the application of the weakest link approach for credit and liquidity support providers. Liquidity Risk Mitigated by Structure: An early prepayment feature or external liquidity provider provides liquidity support to mitigate timing mismatches between principal collections on the assets and the repayment of the certificates. If collections from the assets are insufficient to pay transaction costs and target profit amounts of the certificates, we expect the issuer reserve account to cover any shortage. Experienced Programme Administrator: International Islamic Liquidity Management Corporation (IILM) has served as the programme administrator and investment advisor since the programme's inception in 2013. We assess IILM's asset origination, programme management, operations, administration and credit-risk management capabilities as effective and supportive of the assigned ratings. Robust Legal Structure and Transaction Documents: The issuer and the holding are public limited liability companies incorporated in Luxembourg. The programme is structured so both entities are isolated from the bankruptcy and insolvency risks of the entities involved in the programme. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The ratings on the certificates issued from the programme are sensitive to changes in the Long-Term Issuer Default Ratings (IDRs) of the RPEs. Based on the applicable criteria, a one-notch downgrade of any RPE would not affect the ratings. A two-notch downgrade of the weakest link may result in a one-notch downgrade of the programme and certificates. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A one-notch upgrade of the weakest link would not lead to an upgrade of the certificates as the asset eligibility criteria require at least an 'A' rating. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The majority of the underlying assets or RPEs have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the RPEs. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. REPRESENTATIONS, WARRANTIES AND ENFORCEMENT MECHANISMS A description of the transaction's representations, warranties and enforcement mechanisms (RW&Es) that are disclosed in the offering document and which relate to the underlying asset pool was not prepared for this transaction. Offering Documents for this market sector typically do not include RW&Es that are available to investors and that relate to the asset pool underlying the trust. Therefore, Fitch credit reports for this market sector will not typically include descriptions of RW&Es. For further information, please see Fitch's Special Report titled 'Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions'. ESG Considerations Fitch does not provide ESG relevance scores for IILM 2 SA. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. For more information on Fitch's ESG Relevance Scores, visit Additional information is available on PARTICIPATION STATUS The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure. APPLICABLE CRITERIA Asset-Backed Commercial Paper Rating Criteria (pub. 01 Mar 2022) (including rating assumption sensitivity) Structured Finance and Covered Bonds Counterparty Rating Criteria (pub. 29 Nov 2023) Structured Finance and Covered Bonds Counterparty Rating Criteria: Derivative Addendum (pub. 29 Nov 2023) Global Structured Finance Rating Criteria (pub. 19 Nov 2024) (including rating assumption sensitivity) Structured Finance and Covered Bonds Country Risk Rating Criteria (pub. 17 Jun 2025) ADDITIONAL DISCLOSURES Dodd-Frank Rating Information Disclosure Form Solicitation Status Endorsement Policy ENDORSEMENT STATUS International Islamic Liquidity Management 2 SA EU Endorsed, UK Endorsed DISCLAIMER & DISCLOSURES All Fitch Ratings (Fitch) credit ratings are subject to certain limitations and disclaimers. Please read these limitations and disclaimers by following this link: In addition, the following details Fitch's rating definitions for each rating s Read More Solicitation Status The ratings above were solicited and assigned or maintained by Fitch at the request of the rated entity/issuer or a related third party. Any exceptions follow below. Endorsement Policy Fitch's international credit ratings produced outside the EU or the UK, as the case may be, are endorsed for use by regulated entities within the EU or the UK, respectively, for regulatory purposes, pursuant to the terms of the EU CRA Regulation or the UK Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019, as the case may be. Fitch's approach to endorsement in the EU and the UK can be found on Fitch's Regulatory Affairs page on Fitch's website. The endorsement status of international credit ratings is provided within the entity summary page for each rated entity and in the transaction detail pages for structured finance transactions on the Fitch website. These disclosures are updated on a daily basis.
Zawya
24-06-2025
- Business
- Zawya
IILM welcomes AlRayan Bank as its 15th Primary Dealer, the third for 2025
Kuala Lumpur, Malaysia – The International Islamic Liquidity Management Corporation (IILM) is pleased to announce the onboarding of AlRayan Bank, a leading Islamic financial institution based in Qatar, as its 15th Primary Dealer, the 3rd for 2025. The addition of AlRayan Bank further strengthens the IILM's expanding global network of financial institutions dedicated to advancing robust cross-border Islamic liquidity management. AlRayan Bank is recognised as one of Qatar's largest and most stable Islamic banks, with a long-standing reputation for sound financial performance and innovation. Its inclusion in the IILM's Primary Dealer network not only enhances GCC representation but also supports the IILM's broader ambition to extend its reach to the other key Islamic finance markets including Europe, through AlRayan Bank's wider group presence. With operations that extend beyond Qatar, AlRayan Bank is well-positioned to promote the IILM's short-term Sukūk programme to a much broader and more diverse investor base, both regionally and internationally. Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: 'We are extremely proud to welcome AlRayan Bank into the IILM family of Primary Dealers. Their onboarding reinforces our efforts to deepen engagement in Qatar and across the GCC, while supporting our expansion into new markets, including Europe. Qatar's Islamic banking landscape is among the most mature and well-regulated globally, and AlRayan Bank's participation is a strong testament to the confidence that regional and international institutions place in the IILM's short-term Sukūk programme. We look forward to their active participation and contribution in both our primary issuance and secondary market activities.' This development marks another important step in the IILM's ongoing efforts to broaden market reach and impact. So far in 2025, the IILM has: Increased its total outstanding assets from USD 4.14 billion at the start of the year to a new record high of USD 5.7 billion, the highest since its inception; Onboarded Golden Global Investment Bank from Türkiye and Kuwait International Bank (KIB) as Primary Dealers, reinforcing the IILM's strong and growing footprint across key Islamic finance jurisdictions; Continued to conduct regular monthly Sukūk auctions averaging USD 1.7 billion, with a solid oversubscription rate over 2 times supported by a strong and diversified investor base. These milestones underscore the growing demand for high-quality, tradable Shari'ah-compliant liquidity instruments and affirm the IILM's pivotal role in enabling Islamic financial institutions to manage short-term liquidity efficiently and consistently. Tahir Pirzada, Head of Treasury at AlRayan Bank, remarked: 'We are honoured to be part of the IILM's distinguished global network of Primary Dealers. The IILM's Sukūk programme is a key pillar in the global Islamic financial architecture, and we are proud to support its vision of enhancing cross-border liquidity. As a leading Islamic bank in Qatar, AlRayan Bank is fully aligned with efforts to strengthen the global Islamic capital market, and we look forward to working closely with the IILM and fellow Primary Dealers to contribute to a more integrated and resilient Islamic finance ecosystem.' Qatar stands as one of the most dynamic Islamic finance hubs globally, supported by a financial system that places strong emphasis on Shari'ah-compliant banking and capital market innovation. Islamic banking assets account for over a quarter of the total banking sector in Qatar, with sustained regulatory and policy support underpinning the continued growth. The Qatar Central Bank (QCB) plays an instrumental role in promoting Islamic finance both domestically and internationally, in collaboration with international standard-setting bodies and other relevant stakeholders. AlRayan Bank also participated in the IILM's eleventh auction for the year today as a Primary Dealer in the primary market. The IILM reissued a total of USD 1.025 billion worth of short-term Ṣukūk across three different tenors: one, three, and six months. The three series were priced competitively at: 4.55% for USD 510 million for 1-month tenor; 4.75% for USD 290 million for 3-month tenor; and, 4.55% for USD 225 million for 6-month tenor Today's successful completion of the short-term Ṣukūk transaction brings the IILM's year-to-date cumulative issuance to USD 11.4 billion, across 33 Ṣukūk series of varying tenors. The auction saw a competitive tender amongst the Primary Dealers and Investors globally, with a very healthy orderbook of USD 2.2 billion, representing a strong and sustained average bid-to-cover ratio of 215%. This latest auction was conducted amid one of the most challenging periods in recent years since the global Covid-19 pandemic, marked by evolving (and intensifying) geopolitical developments, including heightened tensions in the Middle East stemming from the escalating Iran-Israel conflict, alongside persistent macroeconomic uncertainty and shifting monetary policies globally. 'Despite these formidable headwinds, the IILM's successful issuance underscores the resilience of its offerings and continued relevance of its short-term Ṣukūk as one of the most sought-after Shari'ah-compliant liquidity management tools for Islamic financial institutions globally,' Safri added. The IILM's global Primary Dealer network comprises a group of leading financial institutions that actively participate in the issuance, distribution, and secondary market activities of the IILM's short-term Sukūk, rated 'A-1' by S&P and 'F1' by Fitch Ratings, respectively, under a USD 6 billion Sukūk Programme. With the addition of AlRayan Bank, the IILM's network now includes 15 banks from across the globe, 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. 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@ info@ Website: Please follow us on social media for up-to-date information on the IILM: Twitter : Linked in :
Zawya
27-05-2025
- Business
- Zawya
IILM achieves milestone with new highly rated $500mln asset from the GCC
Kuala Lumpur, Malaysia – The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term Shari'ah-compliant financial instruments, is pleased to announce that its outstanding short-term Ṣukūk portfolio has reached a new record-high of USD 5.7 billion following the successful addition of a USD 500 million highly rated Ṣukūk asset by a sovereign-owned entity in the GCC. This significant development reflects the IILM's continued commitment to providing highquality, Shari'ah-compliant liquidity management instruments for the global Islamic finance market. The increase in underlying assets enhances the organisation's capacity to issue short-term Ṣukūk to meet the growing demand from a broad base of global investors. Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: 'Today's auction marks another historic and significant milestone in the IILM's growth trajectory with the inclusion of a new highly rated USD 500 million Ṣukūk asset. This addition not only bolsters our issuance capacity but also enhances the diversification of our asset pool across the GCC region. It represents a huge strategic step forward in expanding our geographical footprint as well as strengthening the credit quality and resilience of the IILM Ṣukūk programme.' 'Reaching an all-time high of USD 5.7 billion in outstanding short-term Ṣukūk is a testament to the robustness of our unique business model and continued the trust placed in the IILM by our investors and network of highly rated asset obligors. This milestone underscores the growing demand for reliable, Shari'ah-compliant liquidity instruments and highlights the IILM's evolving role as a key player in the global Islamic finance ecosystem.' 'We are pleased to collaborate with an expanding network of globally respected institutions as we continue to support the development of robust, Shari'ah-compliant liquidity management tools for the Islamic financial market. This latest development reaffirms the IILM's commitment to delivering transparent, consistent, creditworthy, and liquidity solutions to Islamic financial institutions worldwide.' With the inclusion of the new asset today, the IILM successfully concluded the reissuance and issuance of an aggregate USD 1.28 billion across three different tenors of one, three, and six-month respectively. The three series were priced competitively at: i) 4.55% for USD 540 million for 1-month tenor; ii) 4.55% for USD 400 million for 3-month tenor; and, iii) 4.55% for USD 340 million for 6-month tenor. This marks the IILM's ninth auction year-to-date and the second for the month of May. Year-to-date, cumulative issuances have reached USD 9.49 billion across 27 Ṣukūk series of varying tenors. The auction attracted strong demand from the IILM's network of Primary Dealers and global investors, resulting in a healthy orderbook of USD 2.58 billion and a robust average bid-to-cover ratio of 202%, reflecting continued confidence in the IILM's short-term Ṣukūk programme. 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 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)
Zawya
14-05-2025
- Business
- Zawya
IILM reaches historic milestone with USD 1.24bln four-tenor Sukuk
Kuala Lumpur, Malaysia: The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term Shari'ah-compliant financial instruments, has successfully completed the reissuance of an aggregate USD 1.24 billion short-term Ṣukūk across four different tenors of one, three, six, and twelve-month respectively. The four series were priced competitively at: 4.65% for USD 485 million for 1-month tenor; 4.40% for USD 310 million for 3-month tenor; 4.42% for USD 285 million for 6-month tenor; and, 4.40% for USD 160 million for 12-month tenor The successful completion of the short-term Ṣukūk transaction today marks the IILM's eighth auction year-to-date, with cumulative issuances totalling USD 8.21 billion across 24 Ṣukūk series of varying tenors. The auction saw a competitive tender amongst the Primary Dealers and Investors globally, with a very healthy orderbook of USD 2.65 billion, representing a strong and sustained average bid-to-cover ratio of 214%. Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: '"Today's transaction marks yet another pivotal and historic milestone for the IILM, as we successfully offered four different tenors – one, three, six, and twelve-month – for the first time in a single auction. This strategic move underscores the IILM's firm commitment to providing greater flexibility and depth in high-quality Shari'ah-compliant short-term liquidity management space, in line with the growing and evolving needs of Islamic financial institutions globally." The auction saw impressive demand across all the four tenors, despite the ongoing volatility in global rate markets and rising short-term funding costs amid tightening liquidity conditions. Investor appetite remained resilient, bolstered by a renewed risk-on tone, following a joint US-China announcement on reciprocal tariff reductions. The positive market sentiment exceeded expectations and provided a constructive backdrop for the issuance. As market conditions continue to stabilise, the IILM remains a reliable and trusted provider of high-quality Islamic liquidity management tools for the global Islamic finance community." 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 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) T: +60(3) 2170 5000 F: +60(3) 2170 5111 E: corpcomm@ info@ Website: Please follow us on social media for up-to-date information on the IILM: Twitter : Linked in :
