IILM reissues US$740mil short-term sukuk

KUALA LUMPUR: The International Islamic Liquidity Management Corp (IILM) has completed its fourth auction for the year with the reissuance of an aggregate US$740 million (US$1=RM4.75) short-term sukuk.

In a statement today, the international organisation, which develops and issues short-term shariah-compliant financial instruments, said the sukuk were issued across tenors of one, three, and 12 months, respectively.

The three series were priced at 5.00 per cent for US$200 million for one-month tenor; 5.27 per cent for US$240 million for three-month tenor; and 5.15 per cent for US$300 million for 12-month tenor.

"The sukuk reissuance witnessed a competitive tender among primary dealers and investors from markets across the Gulf Corporation Council region and Asia, with a combined orderbook over US$1.7 billion, representing an average bid-to-cover ratio of 230 per cent,” IILM said.

It also noted that IILM has achieved year-to-date cumulative issuances totalling US$3.61 billion through 12 sukuk series.

The IILM’s short-term sukuk is distributed by a diversified network of 10 primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Boubyan Bank, CIMB Islamic Bank Bhd, Dukhan Bank, First Abu Dhabi Bank, Kuwait Finance House, Maybank Islamic Bhd, Qatar Islamic Bank, and Standard Chartered Bank.

The IILM is a regular issuer of short-term sukuk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services.

The total amount of IILM sukuk outstanding is currently at US$3.51 billion. - Bernama