The IILM Reissues USD 1.05 billion Sukuk

07/08/2019

Today, the International Islamic Liquidity Management Corporation (IILM) has successfully reissued A-1 short-term Sukuk amounting to USD 1.05 billion in three tranches with three different tenors of 1-month, 3-month and 6-month, respectively.  The breakdown details of today’s reissuance are as follows:

1. USD 250 million with 1-month tenor at a profit rate of 2.25%;

2. USD 400 million with 3-month tenor at a profit rate of 2.30%; and

3. USD 400 million with 6-month tenor at a profit rate of 2.25%.

 

1. The three series of the IILM Sukuk issued today were 1-month, 3-month, and 6-month tenors, respectively.

2. The demand for the three Sukuk series reached bid-to-cover ratio of 234%, 176% and 145%, respectively.

3. The profit rates achieved are:

i) 2.25% for the 1-month, compared to the indicative pricing guidance range of 2.28%-2.34%;

ii) 2.30% for the 3-month, compared to the indicative pricing guidance range of 2.29%-2.35%; and

iii) 2.25% for the 6-month, compared to the indicative pricing guidance range of 2.18-2.24%.

4. The strong overall demand despite the upcoming Eid break is a testimony of the investors’ appetite for the IILM Sukuk.

5. Purchases by Islamic Primary Dealers (PDs) in the primary auction amounted to 54%, 92% and 25% for the 1-month, 3-month and 6-month Sukuk, respectively.

6. In terms of geographical distribution, the allocation of GCC-based PDs stood at 46%, 79% and 50% for the 1-month, 3-month and 6-month Sukuk respectively. Asia-based PDs were respectively allocated 20% and 13% of the 1-month and 3-month Sukuk. The PDs based in other jurisdictions were allocated 34%, 8% and 50% across the three tenors, respectively.

The following PDs have participated in the three auctions conducted under the competitive bidding of the Bloomberg AUPD Platform, sorted by alphabetical order:

1. Abu Dhabi Islamic Bank;

2. Al Baraka Turk;

3. Barwa Bank;

4. Boubyan Bank;

5. CIMB Islamic;

6. First Abu Dhabi Bank;

7. Kuwait Finance House;

8. Macquarie Bank;

9. Maybank Islamic;

10. Qatar Islamic Bank; and

11. Standard Chartered Bank.

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