Doha: The International Islamic Liquidity Management Corporation (IILM) yesterday successfully conducted its auction amidst the challenging global market conditions by issuing three short-term A-1 rated Sukuk for a total amount of $1.06bn.
The auction drew more than $1.85bn in demand with an average bid-to-cover ratio for the three tranches of 175 percent - an increase of 16 percent of the order book since last month issuances. With over 60 orders from diversified investors, the Islamic Primary Dealers got allocations across all tenors of up to 90 percent of the total issuances.
The $300m 1-month Sukuk were offered at 1.15 percent, while the $460m 3-month and $300m 6-month series were offered at 1.55 percent and 1.73 percent, respectively. Initial mid-pricing guidance was 7 bps higher for the 6-month tranche and 10 bps higher for the shorter tranches.
Despite the headwinds linked to the Coronavirus pandemic, the oil price slump and tightening liquidity across all the asset classes, the IILM remains committed to offer multiple short-term alternatives to provide high quality Shari’ah-compliant liquidity instruments to the market.
Yesterday’s auction marks a major milestone in the history of the IILM. With this auction, the IILM successfully crossed the 100th mark in Sukuk issued since 2013, which amounts to a cumulative issuances of over $53bn, the IILM said in a statement.
The IILM short-term Sukūk programme is rated “A-1” by S&P. The total of IILM Sukuk outstanding is $2.51bnn with a Shari’ah tradability ratio of 71 percent tangible assets.
