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.