THE International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term Shariah-compliant financial instruments, has successfully completed the reissuance of an aggregate US$1.31 billion short-term Sukuk across three different tenors of one, three, and six-month respectively.

The three series were priced competitively at 4.78% for US$550 million for 1-month tenor, 4.67% for US$570 million for 3-month tenor, and 4.51% for US$190 million for 6-month tenor.

The latest Sukuk issuance marks the IILM’s twelfth auction for the year and its largest issuance size year-to-date, the Kuala Lumpur-based organisation said in a statement released yesterday.

It said the auction also witnessed a competitive tender among primary dealers and investors from markets across the GCC, Asia and Africa, with a combined orderbook in excess of US$2.75 billion, representing an average bid-to-cover ratio of 210%.

IILM CEO Mohamad Safri Shahul Hamid said the auction witnessed the participation of two African financial institutions for the first time, both from Nigeria – an Islamic bank and a conventional bank – reflecting the growing global appeal of the IILM’s short-term Islamic papers.

Year-to-date, IILM has issued a cumulative US$11.82 billion across 36 Sukuk series.

The IILM regularly issues short-term Sukuk across 1-month, 3-month, 6-month, and 12- month tenors to cater to the liquidity needs of institutions offering Islamic financial services. – TMR