IILM: US$710 Mln Short-term Sukuk Oversubscribed By 2.15 Times
KUALA LUMPUR, Feb 18 (Bernama) -- The International Islamic Liquidity Management Corp (IILM) has completed the reissuance and issuance of an aggregate of US$710 million (US$1=RM4.440) short-term sukuk, spread across two different tenors: one-month and three-month maturities.
The two series were priced competitively at 4.40 per cent for US$310 million with a one-month tenor and 4.45 per cent for US$400 million with a three-month tenor.
The organisation noted that the short-term sukuk transaction marks the second auction of February, which witnessed strong competition among primary dealers and global investors.
The auction attracted an impressive order book of US$1.53 billion, representing an average bid-to-cover ratio of 215 per cent.
IILM’s chief executive officer, Mohamad Safri Shahul Hamid stated that with this auction, the total sukuk issuance for February now stands at US$1.76 billion, showing continued strong demand for IILM’s short-term sukuk.
“The oversubscription rate reflects deep investor confidence in IILM’s ability to consistently deliver high-quality, shariah-compliant solutions in dynamic market conditions,” he said in a statement today.
This issuance forms part of IILM’s “A-1” (S&P) and “F1” (Fitch Ratings) rated US$6 billion short-term sukuk issuance programme. The current outstanding amount of IILM sukuk is US$4.19 billion.
The IILM’s short-term sukuk is distributed through a growing and diversified network of primary dealers globally, including Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, Boubyan Bank, CIMB Islamic Bank Bhd, Dukhan Bank, First Abu Dhabi Bank, Golden Global Investment Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic Bhd, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank, and Standard Chartered Bank.
As a regular issuer of short-term sukuk across varying tenors and amounts, the IILM continues to cater to the liquidity needs of institutions offering Islamic financial services.
IILM will also continue to reissue its short-term liquidity instruments monthly as per its issuance calendar.
-- BERNAMA