The International Islamic Liquidity Management Corporation ( IILM ) has reissued a series of short-term sukuk amounting to US$1.21 billion, drawing strong investor interest worldwide.

The deal, comprising three different tenors, was competitively priced at 4.40% for US$350 million for the one-month tenor; 4.40% for US$550 million for the three-month tenor; and 4.35% for US$310 million for the six-month tenor.

It was IILM’s fourth auction year-to-date, with cumulative issuances totalling US$4.24 billion across 11 sukuk series of varying tenors. The issuance forms part of the group’s “A-1” ( S&P ) and “F1” ( Fitch Ratings ) rated US$6 billion short-term sukuk issuance programme.

The auction saw a competitive tender among primary dealers and investors from various parts of the world. The orderbook reached US$2.813 billion, representing an impressive average bid-to-cover ratio of 232.5%.

"Against a backdrop of ongoing macroeconomic volatility, amplified by global trade tensions and evolving expectations surrounding the Federal Reserve’s interest rates, IILM’s US$1.21 billion sukuk issuance reaffirms our commitment to supporting stability in the Islamic financial markets,” says IILM chief executive officer Mohamad Safri Shahul Hamid.

The group will continue to reissue its short-term liquidity instruments monthly, as scheduled in its issuance calendar, to meet the growing needs of Islamic investors, Safri adds.

Among the primary dealers distributing the short-term sukuk are Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic 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.