KUALA LUMPUR: The Malaysia-based International Islamic Liquidity Management Corp (IILM) will lengthen maturities in its Islamic bond programme when it auctions $790m of sukuk next week, according to a filing with the Malaysian central bank.
The decision to offer a six-month maturity for the first time is a step towards increasing the appeal of IILM sukuk, which were introduced to meet a shortage of liquid, investment-grade instruments which Islamic banks can trade to manage their short-term funding needs. Previously, the IILM issued only three-month paper.
The IILM, a consortium of central banks from Asia, the Middle East and Africa, will offer $400m of six-month sukuk and $390m of three-month paper next Monday, the filing said.
The consortium launched its sukuk programme in August last year and currently has $1.35bn of paper outstanding, including $490 m of three-month sukuk issued in May and maturing this month.
Reuters
