Kuala Lumpur, Malaysia – The International Islamic Liquidity Management Corporation (IILM) has secured a new high-quality asset worth USD 500 million as it expands its pool of assets to meet the growing demand for the IILM’s short-term Islamic papers.

With the inclusion of a new underlying asset in the IILM’s portfolio, the IILM successfully completed the issuance and reissuance of an aggregate USD 810 million short-term Ṣukūk across three different tenors of one, three, and twelve-month respectively. 

The three series were priced competitively at:

1. 4.50% for USD 390 million for 1-month tenor;
2. 4.52% for USD 275 million for 3-month tenor; and,
3. 4.45% for USD 145 million for 12-month tenor.

The short-term Ṣukūk transaction today marks the IILM’s fifth auction year-to-date, with cumulative issuances totalling USD 5.05 billion across 14 Ṣukūk series of varying tenors.

The auction saw a competitive tender amongst the Primary Dealers and Investors globally, with a strong orderbook of USD 1.74 billion, representing an impressive average bid-to-cover ratio 215%.

Mohamad Safri Shahul Hamid, Chief Executive Officer of the IILM, said: “We are pleased to announce an inclusion of a USD 500 million high-quality asset into our portfolio, bringing the total IILM outstanding Ṣukūk to an all-time high of USD 4.69 billion. 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 a very exciting phase of our growth and expecting to see a steady increase in our outstanding Ṣukūk asset pool in the coming months with at least a couple more new assets to be onboarded by the end of first half of the year.”

“Today’s successful auction of USD 810 million is well supported by a robust orderbook and competitive pricing, which clearly reflects the appeal of IILM’s short-term Ṣukūk as a safe haven Islamic instrument. The remarkable bid-to-cover ratio of 215% and cumulative year-to-date issuances surpassing USD 5 billion highlight the IILM’s pivotal role in global Islamic finance. As market volatility persists, institutional investors continue to prioritise IILM Ṣukūk for its resilience, liquidity, and alignment with international regulatory standards. We remain dedicated to advancing our USD 6 billion issuance program, delivering innovative tools that empower financial institutions to navigate evolving liquidity needs while upholding the highest standards of ethical finance.”

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.

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.