IILM Reissues US$1.14 Bln Short-term Sukuk

KUALA LUMPUR, Oct 1 (Bernama) -- The International Islamic Liquidity Management Corporation (IILM) has completed the reissuance of an aggregate US$1.14 billion (US$1=RM4.1530) short-term sukuk across tenors of one, three, and 12 months, respectively.

In a statement today, IILM said the three series were priced competitively at 4.90 per cent for US$490 million for a 1-month tenor; 4.80 per cent for US$430 million for 3-month tenor; and 4.15 per cent for US$220 million for a 12-month tenor.

It said the latest sukuk issuance marked IILM’s 11th auction for the year, as well as the third time the 12-month tenor was offered in 2024.

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“The sukuk reissuance witnessed a competitive tender among primary dealers and investors from markets across the Gulf Cooperation Council and Asia, with a combined orderbook in excess of US$2.43 billion, representing an average bid-to-cover ratio of 213 per cent,” it added.

Chief executive officer Mohamad Safri Shahul Hamid said the latest auction outcome saw a strong and well supported demand for the short-term Islamic papers and solid bid-to-cover ratios across all three tenors.

“The IILM’s short-term sukuk continues to be one of the most sought-after Islamic liquidity management solutions for many global institutions with an appetite for shariah-compliant instruments,” he said.

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Year-to-date, IILM has issued a cumulative US$10.51 billion across 33 sukuk series.

It said the issuance forms part of the IILM’s “A-1” (S&P Global Ratings) and “F1” (Fitch Ratings) rated US$6 billion short-term sukuk issuance programme.

The total amount of IILM sukuk outstanding is now US$4 billion, it added.

-- BERNAMA