The International Islamic Liquidity Management Corporation (IILM) has issued and reissued a total of US$1.35 billion (US$1 = RM4.15) in short-term sukuk across five different tenors, marking the broadest range of maturities the organisation has ever offered in a single auction. The latest issuance includes US$290 million in one-month sukuk priced at 4.10%, US$385 million in two-month sukuk priced at 4.15%, US$365 million in three-month sukuk priced at 4.10%, and US$210 million in six-month sukuk priced at 4.12%. The IILM also introduced a new nine-month tenor with a US$100 million offering priced at 4.05%.
The addition of the nine-month sukuk expands the IILM’s liquidity management toolkit and provides Islamic financial institutions with greater flexibility in managing Shariah-compliant funding needs. With the latest issuance, the IILM’s total outstanding sukuk will rise to a record US$6.4 billion, reflecting its growing role in global Islamic liquidity management.
Investor demand for the auction was strong, attracting US$3.29 billion in bids and resulting in an average bid-to-cover ratio of 2.44 times. Commenting on the issuance, IILM chief executive officer Mohamad Safri Shahul Hamid said the introduction of the longer-dated nine-month tenor addresses market demand for instruments similar to US dollar asset-backed commercial paper. He noted that expanding the maturity spectrum enhances the organisation’s value proposition and provides investors with a more efficient and calibrated liquidity management platform.
This latest auction marks the IILM’s 20th issuance of the year, bringing its total 2025 sukuk issuances to US$21.55 billion across 65 series under its US$8.5 billion programme. The programme carries an “A-1” rating from S&P Global Ratings and an “F1” rating from Fitch Ratings, underscoring its strong credit quality.
Primary dealers participating in the issuance include Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, Al Rayan Bank, Boubyan Bank, CIMB Islamic Bank Bhd, Dukhan Bank, First Abu Dhabi Bank, Golden Global Investment Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic Bhd, Meethaq Islamic Banking of Bank Muscat, Qatar Islamic Bank and Standard Chartered Bank.