The International Islamic Liquidity Management Corporation (IILM) has successfully conducted its auction yesterday by issuing two short-term A-1 rated Sukuk of 1-month and 3-month tenors for a total amount of $600m.
The auction drew more than $1.19bn in demand with an average bid-to-cover ratio of 198 percent for both series. The Islamic Primary Dealers based in the GCC region dominated the allocation across the board.
The $300m1-month Sukuk offered a profit rate of 0.27 percent, while the $300m 3-month offered0.40 percent. The final pricing came up lower than the initial pricing guidance. Despite the market rates being well anchored at the short end of the curve, the IILM remains committed to providing the market with Shari’ah-compliant shortterm high quality liquidity management instruments.
The IILM short-term Sukuk programme is rated “A-1” by Standards &Poor’s. The total of IILM Sukuk outstanding is $2.51bn with a Shari’ah tradability ratio of 71 percent tangible assets.
