The International Islamic Liquidity Management Corporation (IILM), an international organization that develops and issues short-term Shariah-compliant financial instruments, on November 5 reissued a total of US$1.31 billion short-term sukuk in three tenors.

The latest issuances were priced competitively at 4.78% for US$550 million for the one-month tenor; 4.67% for US$570 million for the three-month tenor; and 4.51% for US$190 million for the six-month tenor.

The offering marks the IILM’s 12th auction for the year and its largest issuance size year-to-date.  It witnessed a competitive tender among primary dealers and investors from markets across the Gulf Cooperation Council, Asia, and Africa, with a combined orderbook in excess of US$2.75 billion, representing an average bid-to-cover ratio of 210%.

“We are extremely pleased with the outcome of the IILM’s largest issuance year-to-date, ahead of possibly one of the most important days in 2024. Today's auction saw a strong and solid demand from global Islamic investors seeking high-quality, safe-haven liquidity management instruments, as reflected by a healthy bid-to-cover ratio across all three tenors on offer,” comments IILM chief executive officer Mohamad Safri Shahul Hamid.

“Today's auction also witnessed the participation of two African financial institutions for the very first time, both from Nigeria – an Islamic bank and a conventional bank – reflecting the growing global appeal of the IILM’s short-term Islamic papers.”

Since the start of the year, the Kuala Lumpur-based IILM has issued a cumulative US$11.82 billion across 36 sukuk offerings. The latest issuances form part of the IILM’s US$6 billion short-term sukuk issuance programme,  rated “A-1” by S&P and “F1” by Fitch Ratings. The total amount of IILM’s sukuk outstanding is now US$4 billion.

The IILM regularly issues short-term sukuk across one-month, three-month, six-month, and 12-month tenors to cater to the liquidity needs of institutions offering Islamic financial services. The IILM will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.

The IILM’s short-term sukuk is currently distributed by a diversified network of 11 primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, Boubyan Bank, CIMB Islamic Bank Berhad, Dukhan Bank, First Abu Dhabi Bank, Kuwait Finance House, Maybank Islamic Berhad, Qatar Islamic Bank, and Standard Chartered Bank.