IILM completes seventh auction with US$1.1b short-term sukuk

KUALA LUMPUR, July 12 — The International Islamic Liquidity Management Corporation (IILM) has successfully completed its seventh auction for 2021 today, by reissuing a total of US$1.1 billion (US$1= RM4.19) short-term sukuk.

It said the short-term sukuk comprised US$400 million one-month tenor priced at 0.27 per cent, US$500 million three-month at 0.30 per cent, and US$200 million six-month at 0.36 per cent.

“Today’s sukuk reissuance at the beginning of the third quarter of the year witnessed strong demand from Primary Dealers and investors, mainly across the Gulf Cooperation Council (GCC) markets as well as Asia, with an encouraging order book in excess of US$1.95 billion, representing an average oversubscription rate of 1.8 times,” IILM said in a statement today.

Meanwhile, chief executive officer Dr Umar Oseni said that the competitive demand and strong appetite from investors for high-quality Islamic short-term papers reflect a continued positive market trend at the start of the second half of the year.

“While the recent spike in Covid-19 infection rate globally due to the highly transmissible Delta variant has caused renewed lockdown in some countries, and the uncertain developments surrounding oil prices have kept markets on its toes, IILM remains steadfast with our commitment and mandate to provide short-term liquidity instruments for the Shariah-compliant financial markets,” he added.

Further to today’s reissuance, IILM has achieved year-to-date cumulative issuances totalling US$8.11 billion through 21 sukuk series.

The total amount of IILM’s sukuk outstanding stood at US$3.51 billion, and the short-term sukuk programme is rated A-1 by S&P Global Ratings. — Bernama

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