KUALA LUMPUR: The International Islamic Liquidity Management Corporation (IILM) has issued and reissued a record US$1.546bil in short-term sukuk, attracting US$3.49bil in investor orders amid heightened global market uncertainty.
The auction, conducted on Oct 20, achieved an oversubscription ratio of 2.26 times, marking the largest issuance by volume in IILM’s history.
The transaction comes amid escalating geopolitical tensions in the Gulf, disruptions to energy supplies and shipping routes, elevated oil prices and persistent inflationary pressures.
In a statement, IILM chief executive officer Mohamad Safri Shahul Hamid said the record issuance reflected strong demand for the corporation’s short-term Islamic liquidity instruments and the depth of its global investor base.
“The ability to execute a record US$1.546bil transaction, supported by approximately US$3.49bil in investor orders, reflects the depth of our investor base and the strength of our issuance platform.
“It further reinforces IILM’s role as a consistent, globally distributed provider of short-term Islamic liquidity instruments, particularly when market conditions are increasingly demanding,” he said.
The US dollar-denominated sukuk were issued across five tenures, ranging from two weeks to 12 months.
The three-month tranche accounted for the largest share at US$605mil, carrying a profit rate of 4.34%, followed by US$397mil for the one-month tenure at 4.25%.
The six-month tranche raised US$253mil at 4.50%, while the two-week and 12-month tranches raised US$210mil and US$81mil, at 4.20% and 4.85% respectively.
Year-to-date, IILM has issued US$25.78bil across 98 sukuk series, reflecting its continued activity in the international Islamic money market.
All issuances were conducted under IILM’s US$8.5bil Short-Term Sukuk Issuance Programme, which carries an “A-1” rating from S&P Global Ratings and an “F1” rating from Fitch Ratings.
IILM distributes its sukuk globally through a network of 16 primary dealers, including Affin Islamic Bank, CIMB Islamic Bank, Maybank Islamic, Abu Dhabi Islamic Bank, Kuwait Finance House and Standard Chartered Bank.
IILM said it would continue providing a regular supply of Shariah-compliant short-term sukuk with maturities ranging from two weeks to 12 months to support liquidity management among Islamic financial institutions worldwide.
