Kuala Lumpur: The International Islamic Liquidity Management Corporation (IILM) has secured a new high-quality asset worth US$500 million (US$1=RM4.435) as it expands its asset pool to meet the growing demand for its short-term Islamic papers.
According to BERNAMA News Agency, IILM announced that with the inclusion of a new underlying asset in its portfolio, it completed the issuance and reissuance of an aggregate US$810 million in short-term sukuk across three different tenors: one month, three months, and 12 months.
IILM reported that the three series were priced competitively at 4.50 per cent for US$390 million (one-month tenor), 4.52 per cent for US$275 million (three-month tenor), and 4.45 per cent for US$145 million (twelve-month tenor).
Today’s short-term sukuk transaction marks IILM’s fifth auction year-to-date, with cumulative issuances totaling US$5.05 billion across 14 sukuk series of varying tenors.
The auction witnessed competitive bidding among primary dealers and investors globally, with a strong order book of US$1.74 billion, representing an average bid-to-cover ratio of 215 per cent.
IILM chief executive officer Mohamad Safri Shahul Hamid stated that the addition of the US$500 million high-quality asset to its portfolio brings the total IILM outstanding sukuk to an all-time high of US$4.69 billion.
He emphasized that the inclusion of this new asset fortifies their liquidity offerings and reaffirms IILM’s role as a provider of long-term funding solutions for eligible issuers and obligors.
Mohamad Safri expressed that they are in a growth phase and expect a steady increase in their outstanding sukuk asset pool in the coming months, with plans to onboard at least a couple more new assets by the end of the first half of the year.
He added that today’s successful auction of US$810 million is well supported by a robust orderbook and competitive pricing, reflecting the appeal of IILM’s short-term sukuk as a safe haven Islamic instrument.
The bid-to-cover ratio of 215 per cent and cumulative year-to-date issuances surpassing US$5 billion underline IILM’s pivotal role in global Islamic finance.
Mohamad Safri noted that as market volatility continues, institutional investors prioritize IILM Sukuk for its resilience, liquidity, and alignment with international regulatory standards.