Today, the International Islamic Liquidity Management Corporation (IILM) conducted the second auction of the year by issuing a total amount of USD 1 billion short-term A-1 rated Ṣukūk in three series.
The overall demand was strong with a total order book of USD 2.15 billion and a weighted average bid-to-cover ratio for the three Ṣukūk series of 215%.
The three series comprise the issuances of USD 300 million of 1-month tenor at 1.71%; USD 300 million of 3-month tenor at 1.75%; and USD 400 million of 6-month tenor at 1.80%, respectively.
The cut-off profit rates across the Ṣukūk were far below the January levels, namely -14, -18, -15 basis points for the 1-month, 3-month and 6-month Ṣukūk, respectively. The IILM Ṣukūk profit rates decline reflects the money-market rates drop since the beginning of the year.
In terms of geographical distribution, the allocation of the 3- and 6-month Ṣukūk is equally split between the Asian region and other jurisdictions at more than 90% in total, while the 1-month Ṣukūk allocation is split between Asia with 50% and the GCC region with 33%.
The IILM Short term Sukūk programme is rated “A-1” by S&P. The total of IILM Ṣukūk outstanding is USD 2.51 billion with a Shari’ah tradability ratio of 71% tangible assets.