Islamic Finance

The IILM Issues a total of USD850 million sukuk

Kuala Lumpur, Malaysia – 15 January 2020. The International Islamic Liquidity Management Corporation (IILM) started its auction calendar today by issuing a total amount of USD 850 million short-term A-1 rated Ṣukūk in three series.

The three series comprises the; i) reissuance of USD 300 million with 1-month tenor at 1.85% and ii) issuance of two new series for a total of USD 550 million i.e. USD 300 million with 3-month tenor at 1.93% and USD250 million with 6-month tenor at 1.95%, respectively.

Today’s auction garnered an overall strong demand with a total order book of USD1.177 billion and a weighted average bid-to-cover ratio for the three Ṣukūk series at 138%.

“Apart from the reissuance of USD300 million, the successful issuance of two new Ṣukūk series marks the inclusion of a new high credit quality asset worth of USD 550 million, increasing the supply of the IILM short-term Ṣukūk from USD 1.96 billion to USD 2.51 billion and establishes a very strong start for 2020 for our issuance programme. We are extremely pleased with the result as it will allow the IILM to pursue further its mandate of providing the Institutions offering Islamic Services (IIFS) with alternative liquidity management solutions. We would like to thank our Primary Dealers for supporting the IILM issuance strategy by offering multiple tenors every month to fulfil the different needs of investors and build-in an Islamic money market curve”, said Dr. Umar Oseni, the CEO of the IILM.

In terms of geographical distribution, the allocation of the 6-month Ṣukūk is concentrated in the GCC region at 99% while the 1-month Ṣukūk is evenly spread across the regions. For the 3-month Ṣukūk, the allocation to the GCC region is 64%. Bids were also received from Asia and other jurisdictions for a total of 36% of the issuance size.

The IILM Short-term  Ṣukūk programme is rated “A-1” by S&P. The total of IILM Ṣukūk outstanding will be USD 2.51 billion as at 21 January 2020 with a Sharī’ah tradability ratio of 71% tangible assets.

Copyright Press Releases 2020



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