The Kuala Lumpur-based International Islamic Liquidity Management Corporation (IILM) yesterday successfully conducted an auction for a total issuance of $1.06bn short-term A-1 rated Sukūk in three series of 1-month, 3-month and 7-month tenor, respectively.
The three series have been priced by the market as follows; i) USD400m of 1-month tenor at 0.33 percent; ii) USD460m of 3-month tenor at 0.45 percent; and iii) USD 200m of 7-month tenor at 0.58 percent, respectively. The final profit rates lie within the indicative pricing guidance across all the tenors issued today, including the inaugural 7-month tenor issued. This demonstrates the sound and continuing interest from Primary Dealers and Investors, following the upsize of the asset portfolio that reached thefull capacity of the USD3bn programme size earlier in late July. The tender resulted in significant demand from Middle Eastern, Asian and African investors, with an orderbook that closed in excess of USD1.72bn, representing an average oversubscription rate of 1.62times.Withfrequent monthly issuances throughout the year, the IILM has achieved a total cumulative issuance amount of USD7.5bn year-to-date, which represents around 30 percent of the USD-denominated Ṣukūk year-to-date globally. The IILM will continue to issue its Sukūk regularly to meet the market demand and liquidity needs of institutions offering Islamic financial services.
IILM is an international organisation established by various central banks, monetary authorities and multilateral organisations to develop and issue short-term Shari’ah-compliant financial instruments to facilitate effective cross-border liquidity management for institutions that offer Islamic financial services (IIFS). The current members of the IILM Governing Board are the central banks and monetary agencies of Indonesia, Qatar, Kuwait, Luxembourg, Malaysia, Mauritius, Nigeria, Turkey, the UAE, as well as the multilateral Islamic Corporation for the Development of the Private Sector.
