The Borneo Post (Sabah)

IILM sees sustained strong demand for its short-term sukuk


KUALA LUMPUR: The Internatio­nal Islamic Liquidity Management Corporatio­n (IILM) has successful­ly completed the auction for the reissuance of an aggregate of US$1.10 billion short-term sukuk.

The transactio­n comprised US$400 million one-month tenor priced at 0.33 per cent, US$450 million three-month at 0.36 per cent, and US$250 million six-month at 0.40 per cent.

In a statement, it said the competitiv­e tender resulted in significan­t interest from the Gulf Cooperatio­n Council, especially from Islamic Primary Dealers and investors, with a strong order book in excess of US$1.76 billion representi­ng an average oversubscr­iption rate of 1.6 times.

IILM chief executive officer Dr Umar Oseni said the start of the second quarter had seen improved investor sentiment on the back of a more optimistic outlook for 2021 based on revised growth rates.

“High bid-to-cover ratios demonstrat­e sustained demand for IILM’s shortterm sukuk amid the increase in the supply of long-term sukuk since the beginning of April.

“We are pleased to conclude our fourth auction for the year at competitiv­e all-in profit rates,” he said.

The conclusion of this transactio­n brings the IILM’s year-to-date cumulative issuances to US$5.0 billion.

The total amount of the IILM sukuk outstandin­g is now at US$3.51 billion.

The short-term sukuk programme is rated ‘A-1’ by Standard & Poor’s.

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