The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term Shari’ah-compliant financial instruments, has successfully completed the reissuance of an aggregate USD 1.02 billion short-term Ṣukūk across three different tenors of one, three, and six-month respectively.

The three series were priced competitively at:

1. 4.60% for USD 350 million for 1-month tenor;
2. 4.50% for USD 450 million for 3-month tenor; and,
3. 4.40% for USD 220 million for 6-month tenor.

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

The auction saw a competitive tender amongst the Primary Dealers and Investors globally, with a strong orderbook of USD 2.2 billion, representing an impressive average bid-to-cover ratio 216%.

Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “Today’s 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.

The strong demand from a diverse base of global investors underscores continued confidence in the IILM’s short-term Ṣukūk as a safe haven, Shari’ah-compliant instrument for effective liquidity management during one of the most challenging periods in recent years. The IILM remain committed to supporting our investor community — particularly Islamic financial institutions — through the regular supply of high-quality securities that meet the evolving needs of the Islamic financial markets globally.

“Notably, the significant demand for IILM’s 3-month and 6-month Ṣukūk reflects market expectations of potential monetary easing ahead. This suggests that investors are positioning for a more accommodative global monetary policy environment, driven by central banks’ efforts to stabilise growth amid persistent uncertainty,” Safri added.

The issuance forms part of the IILM’s “A-1” (S&P) and “F1” (Fitch Ratings) rated USD 6 billion short-term Ṣukūk issuance programme. The total amount of IILM Ṣukūk outstanding currently stands at USD 4.69 billion (end-December 2024: USD4.14 billion).

The IILM’s short-term Sukῡk 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 is a regular issuer of short-term Ṣukūk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services. The IILM will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.