IILM Strengthens Position with Record $7.055 Billion Outstanding Ṣukūk Portfolio Amid Market Volatility
Kuala Lumpur, Malaysia – The International Islamic Liquidity Management Corporation (IILM) has achieved a significant milestone, with its total outstanding short-term Ṣukūk assets reaching an unprecedented USD 7.055 billion. This follows a successful issuance and reissuance exercise amounting to USD 975 million. This accomplishment highlights the robust and sustained market interest in high-quality Islamic liquidity instruments, even in the face of ongoing global market uncertainties and cautious investor sentiment.
Successful Issuance Across Multiple Tenors
The recent issuance and reissuance were executed across five different tenors: one, two, three, six, and nine months. The competitive pricing for these instruments was as follows:
- 3.90% for USD 183 million (1-month)
- 4.15% for USD 154 million (2-month)
- 4.00% for USD 408 million (3-month)
- 4.10% for USD 200 million (6-month)
- 4.28% for USD 30 million (9-month)
Despite heightened geopolitical tensions and fluctuating global monetary expectations, the auction drew strong global demand, with total bids reaching USD 2.435 billion, resulting in a notable 2.5x oversubscription. This reflects the enduring appeal of IILM’s highly rated, USD-denominated short-term Ṣukūk as a reliable liquidity management tool during uncertain times.
Investor Confidence and Market Resilience
Mohamad Safri Shahul Hamid, Chief Executive Officer of IILM, indicated that the successful completion of the USD 975 million auction has elevated IILM’s outstanding Ṣukūk portfolio to a record USD 7.055 billion. He emphasized that this milestone demonstrates sustained investor confidence in the strength, consistency, and strategic importance of the IILM’s program.
He noted that the current environment of heightened geopolitical tensions, rising oil-driven inflation concerns, and ongoing uncertainty regarding U.S. interest rates has resulted in significant market volatility. Despite these challenges, IILM has successfully attracted strong investor participation, underscoring the resilience of its program and the essential role of high-quality short-term Islamic liquidity instruments in times of uncertainty.
Year-to-Date Issuance and Future Plans
This transaction marks IILM’s tenth Ṣukūk auction for the year, bringing total issuances in 2026 to USD 11.77 billion across 48 Ṣukūk series with varying maturities. All issuances were conducted under IILM’s USD 8.5 billion short-term Ṣukūk Issuance Programme, which has received “A-1” ratings from S&P Global Ratings and “F1” ratings from Fitch Ratings.
IILM’s short-term Ṣukūk are distributed through a diverse and expanding network of 16 primary dealers globally, including notable institutions such as Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, and Standard Chartered Bank.
The IILM regularly issues short-term Ṣukūk across various tenors and amounts to meet the liquidity needs of institutions offering Islamic financial services. The organization plans to continue reissuing its short-term liquidity instruments monthly, as outlined in its issuance calendar.
About the IILM
The International Islamic Liquidity Management Corporation (IILM) is an international organization established on October 25, 2010, by central banks, monetary authorities, and multilateral organizations. Its mission is to develop and issue short-term Shari’ah-compliant financial instruments to facilitate effective cross-border liquidity management for institutions that provide Islamic financial services (IIFS).
The IILM Governing Board comprises central banks and monetary agencies from Indonesia, Kuwait, Malaysia, Mauritius, Nigeria, Qatar, Türkiye, the United Arab Emirates, as well as the Islamic Corporation for the Development of the Private Sector. Membership is open to central banks, monetary authorities, financial regulatory authorities, and multilateral organizations with regulatory oversight of finance or trade.
The IILM is headquartered in Kuala Lumpur, Malaysia.
For media inquiries, please contact:
The International Islamic Liquidity Management Corporation (IILM)
E: corpcomm@iilm.com; info@iilm.com
Website: IILM
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Twitter: @theiilm
LinkedIn: IILM LinkedIn
Source: www.zawya.com
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Published on 2026-05-18 19:01:00 • By the Editorial Desk
