IILM concludes second auction for 2021 with highest reissuance amount

“We are pleased that with the well received milestone placement, which was fully covered in the early minutes of the auction window, the IILM has extended its 2021 track record of successful issuances, ” said IILM chief executive officer Dr Umar Oseni.

PETALING JAYA: The International Islamic Liquidity Management Corporation (IILM) said it has successfully completed the auction of US$1.35bil short-term sukuk.

In a statement yesterday, IILM said the sukuk was across three different tenors comprising one-month for US$400mil million at 0.25%, three-month for US$500mil at 0.35% and six-month for US$450mil at 0.40%.

“The second issuance of the year marks another milestone for the IILM as its highest issuance size since inception.

“The IILM’s engagement and partnership with its Primary Dealers and investors across various jurisdictions have resulted in robust demand for its sukuk in the current low rate market environment, ” it said.

IIL said the tender resulted in significant interest from Middle East based Primary Dealers and both Middle Eastern and Asian investors, with a final orderbook in excess of US$2.3bil, representing an average oversubscription rate of 1.8 times.

“Yesterday’s successful auction outcome continues to underscore strong investor confidence in the IILM as global markets and economies face the prolonged impact of Covid-19.

“We are pleased that with the well received milestone placement, which was fully covered in the early minutes of the auction window, the IILM has extended its 2021 track record of successful issuances, ” said IILM chief executive officer Dr Umar Oseni.

The total amount of IILM sukuk outstanding is now US$3.51bil. The IILM short-term sukuk programme is rated “A-1” by S&P Global Ratings.IILM is an international organisation established in 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, Luxembourg, Malaysia, Mauritius, Nigeria, Qatar, Turkey, the United Arab Emirates, as well as the multilateral Islamic Corporation for the Development of the Private Sector.