IILM Strengthens Market Stability with $1.335 Billion Short-Term Ṣukūk Reissuance
Kuala Lumpur, Malaysia: The International Islamic Liquidity Management Corporation (IILM) has successfully reissued USD 1.335 billion in short-term Ṣukūk, spanning five tenors: two-week, one-month, three-month, six-month, and nine-month. This strategic move comes amid ongoing market volatility, highlighting IILM’s role as a key player in the global Islamic finance landscape.
Competitive Pricing and Strong Demand
The reissuance comprised five distinct series, each competitively priced:
- 3.90% for USD 251 million (2-week)
- 3.90% for USD 432 million (1-month)
- 3.95% for USD 379 million (3-month)
- 4.00% for USD 218 million (6-month)
- 3.95% for USD 55 million (9-month)
The auction attracted significant interest from global investors, with total bids reaching USD 3.061 billion, resulting in a robust 2.29x oversubscription. This strong demand underscores the continued appetite for high-quality, short-term Islamic financial instruments.
IILM’s Role in Market Stability
Mohamad Safri Shahul Hamid, Chief Executive Officer of IILM, emphasized the importance of reliability in today’s market. He stated that IILM has emerged as the only consistent issuer of USD-denominated Ṣukūk during a period marked by heightened uncertainty. Since the onset of the Middle East conflict, IILM has successfully delivered USD 3.55 billion across three auctions, positioning itself as a critical anchor in the global Islamic liquidity market.
As institutions increasingly prioritize liquidity resilience, IILM’s role in facilitating cross-border liquidity flows has become even more vital. The sustained demand for carry strategies and strong cash positions have contributed to firm pricing in the market.
Continued Issuance Amid Market Challenges
With limited supply and few alternatives available, demand for IILM’s Ṣukūk remains robust. This consistent demand reinforces the significance of regular issuances in maintaining market stability and investor confidence. Shahul Hamid noted that IILM will continue to issue with discipline and consistency, particularly during times when market certainty is most needed.
This transaction marks IILM’s seventh Ṣukūk auction in 2026, bringing total issuances for the year to USD 8.035 billion across 32 series of varying maturities. All issuances fall under IILM’s USD 8.5 billion short-term Ṣukūk Issuance Programme, which has received ratings of “A-1” from S&P Global Ratings and “F1” from Fitch Ratings.
Distribution Network and Future Plans
IILM’s short-term Ṣukūk are distributed through a diverse and expanding network of 16 primary dealers worldwide. These include prominent institutions such as 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, Jaiz Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic Berhad, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank, and Standard Chartered Bank.
IILM remains committed to regularly issuing short-term liquidity instruments to meet the needs of institutions engaged in Islamic financial services. The organization plans to continue its monthly reissuance schedule as outlined in its issuance calendar.
About the IILM
The International Islamic Liquidity Management Corporation (IILM) was established on October 25, 2010, by central banks, monetary authorities, and multilateral organizations. Its primary objective is to develop and issue short-term Shari’ah-compliant financial instruments to facilitate effective cross-border liquidity management for institutions offering 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, and the multilateral Islamic Corporation for the Development of the Private Sector. Membership is open to central banks, monetary authorities, financial regulatory authorities, or government ministries with oversight of finance or trade and commerce, as well as multilateral organizations.
Headquartered in Kuala Lumpur, Malaysia, the IILM continues to play a pivotal role in the global Islamic finance ecosystem.
For media inquiries, please contact:
The International Islamic Liquidity Management Corporation (IILM)
E: corpcomm@iilm.com; info@iilm.com
Website: IILM
For the latest updates, follow IILM on social media:
Twitter: @theiilm
LinkedIn: IILM LinkedIn
Source: www.zawya.com
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Published on 2026-04-07 18:10:00 • By the Editorial Desk
