KUALA LUMPUR: The International Islamic Liquidity Management Corporation (IILM) has completed its latest US$1.26 billion short-term sukuk reissuance, attracting an oversubscription rate of 2.38 times despite highly challenging and volatile market conditions.
IILM said the outcome underscored the resilience and depth of its investor base, as well as continued demand for its highly rated short-term sukuk as a high quality Islamic liquidity management instrument.
"The strong orderbook is particularly notable against a backdrop of heightened geopolitical tensions across the Gulf Cooperation Council (GCC) and wider West Asia, significant energy-price volatility, renewed inflationary pressures and sharply higher global yields," it said in a statement.
The organisation said the reissuance comprised six tenors, namely two-week, one-month, two-month, three-month, six-month and 12-month, with yields ranging from 4.00 per cent to 4.50 per cent.
The two-week sukuk amounted to US$220 million at 4.15 per cent, while the one-month tranche totalled US$356 million at 4.30 per cent.
The two-month tranche amounted to US$240 million at 4.50 per cent, while the three-month tranche totalled US$226 million at 4.25 per cent.
The six-month tranche amounted to US$166 million at 4.35 per cent, while the 12-month tranche totalled US$53 million at 4.00 per cent.
"Total orders received across the auction reached approximately US$2.999 billion. The strength of demand points to enduring market confidence in IILM's highly rated short-term instruments, and in the wider role IILM plays in facilitating cross-border liquidity for the Islamic finance industry," it said.
IILM chief executive officer Mohamad Safri Shahul Hamid said the depth of demand for its sukuk was particularly encouraging amid heightened geopolitical tensions, significant energy-price volatility, renewed inflationary concerns and sharply higher global yields.
"With markets facing considerable uncertainty ahead of the US Federal Reserve’s policy decision tomorrow, investors are carefully assessing the outlook for interest rates and global liquidity. Against this backdrop, today’s strong orderbook demonstrates that investors continue to place significant value on the quality, liquidity and reliability of IILM’s Sukuk,” he added.
The transaction marked IILM’s 18th sukuk auction of 2026, bringing its total issuance for the year to US$22.112 billion across 88 sukuk series of varying maturities.
-- BERNAMA
TAGS: IILM, short term sukuk reissuance, oversubscription, Mohamad Safri Shahul, corporate
