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The Kuala Lumpur-based International Islamic Liquidity Management Corporation ( IILM ), an international organization that develops and issues short-term Shariah-compliant financial instruments, has successfully completed the reissuance of an aggregate US$955 million short-term sukuk across three different tenors of one, three and twelve months.
The three series were priced competitively at:
This marks the IILM’s 10th auction year to date. Cumulative year-to-date issuances have reached US$10.45 billion across 30 sukuk series of varying tenors.
The auction attracted strong demand from the corporation’s network of primary dealers and global investors, resulting in a healthy orderbook of US$2.11 billion and a robust average bid-to-cover ratio of 221%, and reflecting continued confidence in its short-term sukuk programme.
The latest auction was conducted in a volatile market environment marked by heightened uncertainty. Timing-wise, it took place just ahead of the Eid break and against the backdrop of a surge in global sukuk issuances over the past two weeks, totalling US$4.8 billion.
The issuance forms part of the IILM’s A-1 ( S&P )- and F1 ( Fitch Ratings )-rated US$6 billion short-term sukuk issuance programme.
The corporation’s short-term sukuk is distributed by a diversified network of primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, Boubyan Bank, CIMB Islamic Bank, Dukhan Bank, First Abu Dhabi Bank, Golden Global Investment Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank and Standard Chartered Bank.
“With today’s US$955 million sukuk reissuance, the IILM’s year-todate issuance has reached US$10.45 billion,” says Mohamad Safri Shahul Hamid, the corporation CEO. “We remain on-track to meeting our full-year issuance target for 2025 of approximately US$20 billion, which is set to be an all-time high for the IILM ( after issuing US$11.52 billion in 2023 and US$13.01 billion in 2024 ).
“Despite all these headwinds, the robust bid-to-cover ratio of over two times achieved for today’s auction, exactly a week after our last issuance ( of US$1.28 billion ), clearly reinforces the market’s growing interest and confidence in the IILM’s sukuk as one of the most sought-after instruments for short-term Islamic liquidity management globally.”
