IILM Reissues $1.02 Billion Sukūk Amidst Global Market Challenges
Deal News | Apr 08, 2025 | Zawya
The International Islamic Liquidity Management Corporation (IILM) has successfully reissued a total of USD 1.02 billion in short-term Sukūk across three tenors of one, three, and six-months. This marks the sixth auction by the IILM this year, leading to cumulative issuances amounting to USD 6.07 billion spanning 17 Sukūk series. The issuance was met with robust global investor interest as the total order stood at USD 2.2 billion, creating an average bid-to-cover ratio of 216%. The demand reflects expectations of monetary easing and highlights Sukūk’s appeal as a Shariah-compliant instrument amidst ongoing global trade tensions and market unpredictability caused by protectionist measures and US tariff hikes. The IILM continues its commitment to providing top-tier liquidity management solutions and regularly issues high-quality securities under its USD 6 billion short-term Sukūk program, while being supported by a network of esteemed primary dealers worldwide.
Sectors
- Islamic Finance
- Financial Services
Geography
- Malaysia – The IILM is situated in Kuala Lumpur, Malaysia, which is an influential hub in the Islamic finance industry.
- Global – The widespread investor interest and the diversity of primary dealers suggest a considerable global dimension.
Industry
- Islamic Finance – The article focuses on the issuance of Sukūk, a Shariah-compliant financial instrument, which is a key component of Islamic finance.
- Financial Services – The IILM provides cross-border liquidity management, impacting a broad scope of financial services, especially those involved with Islamic financial services.
Financials
- 1.02 billion – Total amount of US dollars raised from the reissuance of short-term Sukūk by IILM.
- 4.60%, 4.50%, 4.40% – The respective yields for the 1-month, 3-month, and 6-month Sukūk tenors.
- 6.07 billion – Cumulative total of IILM Sukūk issuances in 2023 across varying tenors.
- 2.2 billion – Total order book size for this issuance, reflecting a strong investor demand.
- 216% – Average bid-to-cover ratio for the latest IILM Sukūk issuance.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| International Islamic Liquidity Management Corporation (IILM) | Issuer | Organization | An international organization that issues short-term Shariah-compliant financial instruments for Islamic financial institutions. |
| Mohamad Safri Shahul Hamid | Chief Executive Officer | Person | CEO of the IILM, contributing commentary on the significance of the Sukūk issuance. |
| Abu Dhabi Islamic Bank | Primary Dealer | Company | Part of the global network of primary dealers managing the distribution of IILM Sukūk. |
| Al Baraka Turk | Primary Dealer | Company | Involved in the international distribution of the IILM Sukūk. |
| CIMB Islamic Bank Berhad | Primary Dealer | Company | Engaged in distributing the IILM's financial instruments. |
| Standard Chartered Bank | Primary Dealer | Company | Supports the distribution of IILM's short-term Sukūk globally. |