Kuala lumpur: The International Islamic Liquidity Management Corporation (IILM), recognized as the foremost issuer of shariah-compliant short-term liquidity instruments, announced that its outstanding sukuk portfolio has reached an unprecedented US$6.795 billion, marking a 64% rise from US$4.14 billion the previous year.
According to BERNAMA News Agency, the increase is attributed to IILM's latest auction, which successfully issued and reissued US$1.01 billion in short-term sukuk across tenors of one, three, six, and twelve months, demonstrating sustained global demand for high-quality Islamic liquidity instruments. The four series were priced at 3.85% for US$290 million (1-month), 3.87% for US$480 million (3-month), 3.85% for US$210 million (6-month), and 3.45% for US$30 million (12-month).
The auction saw broad-based demand from IILM's network of primary dealers and institutional investors across various jurisdictions. Total bids amounted to US$2.67 billion, yielding an average bid-to-cover ratio of 2.6, which indicates ongoing investor confidence amid evolving market conditions.
This auction represents IILM's third sukuk issuance of 2026, bringing the total year-to-date issuances to US$3.275 billion across 12 series of varying maturities. All issuances were carried out under IILM's US$8.5 billion short-term sukuk programme, which is rated A-1 by S and P Global Ratings and F1 by Fitch Ratings.
IILM CEO Mohamad Safri Shahul Hamid stated that the record outstanding balance underscores strong demand and the rapid deployment of liquidity into the programme by investors. He noted that the increase was supported by the onboarding of a high-quality short-term asset under a new funding format introduced in 2025.
While the outstanding levels are expected to naturally fluctuate with maturities, the sukuk programme allows for an issuance capacity of up to US$8.5 billion, providing flexible, scalable funding options for sovereign, sovereign-linked, and supranational issuers. IILM continues to focus on asset diversification to enhance the resilience and effectiveness of the global Islamic liquidity infrastructure.
The corporation routinely issues short-term sukuk across various tenors to address the liquidity requirements of institutions offering Islamic financial services.