The International Islamic Liquidity Management Corporation ( IILM ), an international organization that develops and issues short-term shariah-compliant financial instruments, has successfully completed the reissuance of an aggregate US$1.02 billion short-term sukuk across three different tenors of one, three and six months.

The three series were priced competitively at:

• 4.60% for US$350 million for the one-month tenor
• 4.50% for US$450 million for the three-month
• 4.40% for US$220 million for the six.

The short-term sukuk transaction marks the IILM’s sixth auction year-to-date, with cumulative issuances totalling US$6.07 billion across 17 sukuk series of varying tenors.

The auction saw a competitive tender among the primary dealers and investors globally, with a strong orderbook of US$2.2 billion, representing an impressive average bid-to-cover ratio 216%. 

The issuance forms part of the IILM’s A-1 ( S&P )- and F1 ( Fitch Ratings )-rated US$6 billion short-term sukuk issuance programme. The total amount of IILM sukuk outstanding currently stands at US$4.69 billion ( end-December 2024: US$4.14 billion ).

The IILM’s short-term sukuk is distributed by a diversified and growing network of primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, Boubyan Bank, CIMB Islamic Bank Berhad, Dukhan Bank, First Abu Dhabi Bank, Golden Global Investment Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic Berhad, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank and Standard Chartered Bank.

The IILM, which 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, will continue, it says, to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.

“This successful reissuance comes against the backdrop of a global market rout, marked by a sharp sell-off that were triggered by the latest wave of US tariff hikes and growing protectionist measures that have shaken investor confidence worldwide,” adds Mohamad Safri Shahul Hamid, IILM’s chief executive officer. “The strong demand from a diverse base of global investors underscores continued confidence in the IILM’s short-term sukuk as a safe haven, Shariah-compliant instrument for effective liquidity management during one of the most challenging periods in recent years.”