The International Islamic Liquidity Management Corporation ( IILM ) has attracted robust global demand for its reissuance of US$880 million short-term sukuk.

The three-tranche offering was priced competitively on Tuesday ( July 8 ) at 4.45% for US$350 million for the one-month tenor, 4.45% for US$310 million for the three-month tenor, and 4.30% for US$220 million for the six-month tenor.

Since the start of the year, the IILM has issued 36 series of short-term sukuk with varying tenors totalling US$12.35 billion. This marks 95% of the IILM’s total cumulative issuance for the whole of 2024 and 60% of the expected total for 2025.

The latest auction attracted keen participation from the IILM’s network of primary dealers and global investors, generating total bids of US$2.25 billion and achieving a strong average bid-to-cover ratio of 2.56x – the highest recorded so far this year.

Mohamad Safri Shahul Hamid, the group’s chief executive officer, comments: “The exceptionally strong outcome of today’s auction – amid ongoing global tensions, heightened geopolitical risks in parts of the Middle East, and divergent liquidity conditions across markets – underscores the resilience and continued relevance of the IILM short-term sukuk growth in addressing cross-border Islamic liquidity needs.

“We are particularly encouraged by the solid demand across all three tenors, which were fully subscribed shortly after the book opened. This reflects deep and overwhelming liquidity appetite and reinforces investor confidence in the IILM’s issuance programme. It also reaffirms the role of our instruments as reliable tools for financial institutions navigating today’s uncertain macroeconomic landscape.”

The issuance forms part of the IILM’s “A-1” ( S&P ) and “F1” ( Fitch Ratings ) rated US$6 billion short-term sukuk issuance programme.

The IILM’s short-term sukuk is distributed by a diversified and growing network of primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, AlRayan Bank, Boubyan Bank, CIMB Islamic Bank Berhad, Dukhan Bank, First Abu Dhabi Bank, Golden Global Investment Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic Berhad, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank, and Standard Chartered Bank.