Kuala Lumpur, Malaysia – The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term Shari’ah-compliant financial instruments, has successfully completed the reissuance and issuance of an aggregate USD 900 million short-term Ṣukūk across three different tenors of one, three, and six-month respectively.
The three series were priced competitively at:
- 4.25% for USD 430 million for 1-month tenor;
- 4.52% for USD 270 million for 3-month tenor; and,
- 4.60% for USD 200 million for 6-month tenor.
The second auction for the month of April comes on the back of the IILM securing a new highly rated (Ṣukūk) asset worth USD 510 million, bringing the total outstanding amount of IILM Ṣukūk in the market to an all-time high of USD 5.2 billion (end-December 2024: USD 4.14 billion; end-December 2023: USD 3.51 billion). This clearly reinforces IILM’s core mandate and firm status as one the most prolific and sought after issuers and providers of high-quality Islamic liquidity management solutions globally.
The successful completion of the short-term Ṣukūk transaction today marks the IILM’s seventh auction year-to-date, with cumulative issuances totalling USD 6.97 billion across 20 Ṣukūk series of varying tenors. The auction saw a competitive tender amongst the Primary Dealers and Investors globally, with a very healthy orderbook of USD 2.41 billion, representing a strong and sustained average bid-to-cover ratio of 268%.
Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “The IILM continues to break new grounds following yet another highly successful auction today, which included a fresh issuance of USD510 million to fund a highly rated obligor via a private placement Ṣukūk. As a result, our total outstanding asset has now crossed the USD 5 billion mark for the very first time in IILM’s history, with a total outstanding asset of USD 5.2 billon.
The onboarding of the new high-quality, Shari’ah-compliant Ṣukūk asset into our pool marks a significant enhancement to the depth and diversification of our underlying asset portfolio. This strategic inclusion strengthens the structural integrity and credit profile of the IILM Ṣukūk, reinforcing its global appeal as a safe heaven, low-risk Islamic instrument.
The strong interest and oversubscription seen in today’s issuance reflect continued investor confidence in the IILM’s short-term Ṣukūk programme as a reliable and trusted Islamic liquidity management tool. With USD 1.92 billion issued across two auctions in April alone, we are encouraged by the sustained demand for our papers across all tenors.
As we continue to navigate a dynamic and uncertain global financial environment, the IILM remains committed to offering Shari’ah-compliant short-term instruments that meet the evolving needs of our growing investor base, while contributing to the development of robust Islamic money markets globally.”
The issuance forms part of the IILM’s “A-1” (S&P) and “F1” (Fitch Ratings) rated USD 6 billion short-term Ṣukūk issuance programme.
The IILM’s short-term Sukῡk is distributed by a diversified and growing network of 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, Golden Global Investment Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic Berhad, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank, and Standard Chartered Bank.
The IILM is a regular issuer of short-term Ṣukūk across varying tenors and amounts 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.
About the IILM
The International Islamic Liquidity Management Corporation (IILM) is an international organisation established on 25 October 2010 by 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, Kuwait, Malaysia, Mauritius, Nigeria, Qatar, Türkiye, the United Arab Emirates, as well as the multilateral Islamic Corporation for the Development of the Private Sector.
Membership of the IILM is open to central banks, monetary authorities, financial regulatory authorities or government ministries or agencies that have regulatory oversight of finance or trade and commerce, and multilateral organisations.
The IILM is hosted by Malaysia and headquartered in Kuala Lumpur.
