IILM issues US$900mil short-term sukuk in two tranches

KUALA LUMPUR: The International Islamic Liquidity Management Corp (IILM) has issued a total of US$900 million short-term A-1 rated sukuk in two series of one-month and three-month tenures respectively.

In a statement today, IILM said the one-month US$400 million issuance had yielded a 0.22 per cent profit rate, while the three-month US$500 million issuance yielded 0.43 per cent.

IILM said the final profit rates of the two series were within the indicative pricing guidance for the one-month and three-month series respectively.

“This demonstrates an increasing interest in high quality sukuk from primary dealers and investors.

“The tender resulted in significant demand from Asian and Middle Eastern investors, with an orderbook that closed in excess of US$1.59 billion, representing an average oversubscription rate of 1.77 times,” said IILM.

With frequent monthly issuances throughout the year, IILM said it had achieved a total cumulative issuance of US$8.37 billion year-to-date. Of this, US$1.04 billion were new issuances.

“This represents around 30 per cent of the US dollar-denominated sukuk year-to-date globally.”

IILM said it was committed to issuing regularly Shariah-compliant liquidity instruments to satisfy the market demand and investors’ needs.

“The IILM short-term sukuk programme is rated “A-1″ by S&P. The total of IILM sukuk outstanding stood at US$3.0 billion,” it added.

Source: NST