KUALA LUMPUR: The International Islamic Liquidity Management Corporation (IILM) has successfully completed the reissuance of US$960 million short-term sukuk across three tenors, with strong investor appetite pushing the bid-to-cover ratio to 2.4 times.
The latest offering comprised:
- US$260 million, one-month tenor, at 4.30%
- US$550 million, three-month tenor, at 4.20%
- US$150 million, six-month tenor, at 4.12%
This marks IILM’s 16th sukuk auction in 2025, bringing total issuances to US$16.61 billion across 49 sukuk series of varying maturities.
The issuance follows closely on the heels of last week’s US$1.285 billion sukuk, reinforcing the organisation’s steady issuance pipeline.
Strong institutional demand
The auction drew US$2.3 billion in bids from IILM’s network of primary dealers and a diversified global investor base. The strong coverage ratio highlights sukuk’s growing role as a high-quality liquidity management instrument for Islamic financial institutions and cross-border investors.
“The IILM sukuk continues to serve as a trusted short-term instrument in meeting the liquidity needs of global institutions, underlining its role in deepening the international Islamic capital market,” the organisation said in a statement.
With year-to-date sukuk issuance already surpassing US$16 billion, IILM’s instruments are becoming increasingly central to Islamic banks’ short-term funding strategies. The transactions also highlight the resilience of Islamic finance markets, even against a backdrop of global macroeconomic uncertainty and shifting rate cycles.
Source: Bernama
