The International Islamic Liquidity Management Corporation (IILM) announced the top three most active Primary Dealers for the IILM Sukūk Programme as at first half of 2021. Based on the total amount allocated at primary level as of June 2021, namely a total of 18 Sukūk issued for a cumulative amount of $7.01bn, the top three Primary Dealers are - Kuwait Finance House, Standard Chartered Bank, and Maybank Islamic Bank.
For Primary Dealer activity and footprint in the secondary market, based on the total trading volume of $737m as of June 2021, the top three Primary Dealers are - First Abu Dhabi Bank, Kuwait Finance House, and Standard Chartered Bank.
Dr Umar Oseni, Chief Executive Officer of the IILM said, “The IILM would like to congratulate the top ranked Primary Dealers who have played a significant role in ensuring the growth of cross-border Islamic liquidity instruments. The first half of 2021 proved to be a challenging one for both Primary Dealers and investors, as the global COVID-19 pandemic that ravaged a large part of 2020 continued to pose uncertainties in the economic recovery across markets which has been further exacerbated with the emergence of new variants.”
“Therefore, we are pleased that the IILM’s Sukūk issuance activities and overall mandate remain on solid footing, made possible by the strong relationship with the Primary Dealers and wider investor base, and continues unabated despite the difficulties posed by the pandemic. As we carry on with our journey towards developing the Sukūk market in a sustainable manner, the IILM is optimistic with the prospects for the rest of year and we look forward to deeper collaborations with our supportive stakeholders,” Dr Umar added.
“Kuwait Finance House (“KFH”) is truly honoured to be recognised as the number one Primary Dealer for the first half of 2021 in the primary market rankings. The IILM plays a crucial role in the international Islamic financial system with sustained strong demand for its ‘A-1’ rated Sukūk programme. KFH is confident that the IILM’s high credit quality liquidity instrument will continue to benefit the Islamic finance industry as a whole and we look forward to continuing to support the IILM with its core mission as a committed strategic partner,” said Khalid Al Rukhayes, Executive Manager of Capital Markets, Kuwait Finance House.
“First Abu Dhabi Bank (“FAB”) greatly appreciates the recognition given by the IILM in our role as the top ranked Primary Dealer in secondary market for first half of the year, reflecting growth and activity of wider Islamic financial institutions. While markets have experienced significant volatility due to the pandemic, the IILM has carried on performing an important and leading role in addressing the liquidity needs of Islamic financial institutions globally.
As a dedicated partner, FAB will continue to foster the development of the Islamic secondary markets further via participation in the IILM’s Sukūk issuance programme,” Nadine Windsor, Head of Credit Trading, FAB Global Markets said. The IILM Short term Sukūk programme is rated “A-1” by S&P.
The total outstanding of the IILM Sukūk stands at USD 3.51 billion, with a Shari’ah tradability ratio of 79% tangible assets as of today. For the full participation in auctions and primary allocations, the first half 2021 ranking of the Financial Institutions is as follows - Kuwait Finance House, Standard Chartered Bank, Maybank Islamic Bank, Boubyan Bank, First Abu Dhabi Bank, CIMB Islamic Bank, Abu Dhabi Islamic Bank, Dukhan Bank, Qatar Islamic Bank, Al Baraka Turk.
