IILM Secures US$500 Mln Asset To Meet Growing Sukuk Demand

KUALA LUMPUR, March 25 (Bernama) — The International Islamic Liquidity Management Corporation (IILM) has secured a new high-quality asset worth US$500 million (US$1=RM4.435) as it expands its asset pool to meet the growing demand for its short-term Islamic papers.

In a statement today, IILM said that with the inclusion of a new underlying asset in its portfolio, it completed the issuance and reissuance of an aggregate US$810 million in short-term sukuk across three different tenors: one month, three months, and 12 months.

According to IILM, the three series were priced competitively at 4.50 per cent for US$390 million (one-month tenor), 4.52 per cent for US$275 million (three-month tenor), and 4.45 per cent for US$145 million (twelve-month tenor).

It stated that today’s short-term sukuk transaction marks its fifth auction year-to-date, with cumulative issuances totalling US$5.05 billion across 14 sukuk series of varying tenors.

The auction saw competitive bidding among primary dealers and investors globally, with a strong order book of US$1.74 billion, representing an impressive average bid-to-cover ratio of 215 per cent.

IILM chief executive officer Mohamad Safri Shahul Hamid said that the inclusion of the US$500 million high-quality asset into its portfolio brings the total IILM outstanding sukuk to an all-time high of US$4.69 billion. 

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“The inclusion of this new asset not only strengthens our liquidity offerings but also reaffirms the role of IILM as a plausible provider of long-term funding solutions for eligible issuers and obligors. 

“We are in an exciting phase of our growth and expecting to see a steady increase in our outstanding sukuk asset pool in the coming months with at least a couple more new assets to be onboarded by the end of the first half of the year,” he said.

Mohamad Safri further said that today’s successful auction of US$810 million is well supported by a robust orderbook and competitive pricing, which reflects the appeal of IILM’s short-term sukuk as a safe haven Islamic instrument. 

“The bid-to-cover ratio of 215 per cent and cumulative year-to-date issuances surpassing US$5 billion highlight IILM’s pivotal role in global Islamic finance. 

“As market volatility persists, institutional investors continue to prioritise IILM Sukuk for its resilience, liquidity, and alignment with international regulatory standards,” he said.

— BERNAMA