KUALA LUMPUR: The International Islamic Liquidity Management Corporation (IILM) successfully issued a combined total of US$1.03 billion in short-term Sukuk across three different durations of one, three, and six months in its fifth auction of 2024,
These series were priced competitively, with rates of 5.3 per cent for US$250 million over one month, 5.33 per cent for US$500 million over three months, and 5.25 per cent for US$280 million over six months.
The IILM's Sukuk reissue also witnessed a competitive tender among primary dealers and investors from markets across the Gulf Cooperation Council (GCC) region as well as Asia, with a combined orderbook in excess of US$2.51 billion.
IILM chief executive officer Mohamad Safri Shahul Hamid said that with global investors continuously searching for high quality Shari'ah-compliant liquidity solutions, IILM is pleased with the successful conclusion of its fifth auction for the year.
"Despite the changing expectations surrounding the Federal Reserve's decision on interest rates, we witnessed a healthy average bid-to-cover ratio of 244 per cent across all three tenors, reflecting a booming demand for the IILM's short-term Islamic papers."
"Further to today's reissuance, the IILM has achieved year-to-date cumulative issuances totaling US$4.64 billion through 15 Sukuk series.
"The issuance forms part of the IILM's "A-1" (S&P) and "F1" (Fitch Ratings) rated US$4 billion short-term Sukuk issuance programme," he said in a statement.
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 now US$3.51 billion.
The IILM said it will continue to reissue its short-term liquidity instruments monthly, as scheduled in its issuance calendar.
Meanwhile, Fitch Ratings said the global environmental, social, and governance sukuk is expected to cross US$50 billion (RM237.32 billion) outstanding globally within the next two years.
This will be buoyed by issuers aiming to meet their funding diversification goals and ESG mandates, alongside new regulatory frameworks and government-led sustainability initiatives, it said in a statement.
