KUALA LUMPUR: The International Islamic Liquidity Management Corporation (IILM) has completed the reissuance of an aggregate US$1.31 billion (US1=RM4.34) short-term sukuk with tenors of one month, three months, and six months. In a statement today, IILM said the three series were priced competitively — 4.78 per cent for US$550 million (one-month tenor); 4.67 per cent for US$570 million (three-month tenor); and 4.51 per cent for US$190 million (six-month tenor).

According to BERNAMA News Agency, the latest sukuk issuance marks the IILM’s 12th auction for the year and its largest issuance size year-to-date. Today’s auction also witnessed a competitive tender among primary dealers and investors from markets across the Gulf Cooperation Council nations, Asia, and Africa, with a combined orderbook in excess of US$2.75 billion, representing an average bid-to-cover ratio of 210 per cent.

IILM chief executive officer Mohamad Safri Shahul Hamid highlighted the strong and solid demand from global Islamic investors se
eking high-quality safe-haven liquidity management instruments, as reflected by a healthy bid-to-cover ratio across all three tenors on offer. Notably, today’s auction also witnessed the participation of two African financial institutions for the very first time, an Islamic bank and a conventional bank from Nigeria, reflecting the growing global appeal of IILM’s short-term Islamic papers.

Year-to-date, IILM has issued a cumulative US$11.82 billion across 36 sukuk series. The issuance is part of IILM’s ‘A-1’ (SandP) and ‘F1’ (Fitch Ratings)-rated US$6 billion short-term sukuk issuance programme. The total amount of IILM outstanding sukuk is now at US$4 billion.

IILM regularly issues short-term sukuk with tenors of one month, three months, six months, and 12 months to cater to the liquidity needs of institutions offering Islamic financial services. Its short-term sukuk is distributed by a network of 11 primary dealers globally, including Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, Boubyan Bank
, CIMB Islamic Bank Bhd, Dukhan Bank, First Abu Dhabi Bank, Kuwait Finance House, Maybank Islamic Bhd, Qatar Islamic Bank, and Standard Chartered Bank.