Islamic Finance

Strong demand sustained for the IILM’s short-term sukuk

Kuala Lumpur, Malaysia – 13 April 2021 - The International Islamic Liquidity Management Corporation (IILM) is pleased to announce that it has successfully completed the auction for the reissuance of an aggregate of USD 1.10 billion short-term Ṣukūk. 

The transaction comprised USD 400 million 1-month tenor priced at 0.33%, USD 450 million 3-month at 0.36% and USD 250 million 6-month at 0.40%. 

The competitive tender resulted in significant interest from the GCC, especially from Islamic Primary Dealers and investors, with a strong orderbook in excess of USD 1.76 billion representing an average oversubscription rate of 1.6 times. 

“The start of the second quarter has seen improved investor sentiment on the back of a more optimistic outlook for 2021 based on revised growth rates.  High bid-to-cover ratios demonstrate sustained demand for the IILM’s short-term Ṣukūk amidst increase in supply of long-term Ṣukūk since the beginning of April.  We are pleased to conclude our fourth auction for the year at competitive all-in profit rates.” said Dr Umar Oseni, Chief Executive Officer of the IILM.

The conclusion of today’s transaction brings the IILM’s year-to-date cumulative issuances to USD5.0 billion.

The total amount of IILM Ṣukūk outstanding is now USD 3.51 billion.  The IILM short-term Sukūk programme is rated “A-1” by S&P.

Copyright Press Releases 2021


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