Today, the International Islamic Liquidity Management Corporation (IILM) has successfully reissued A-1 short-term sukuk amounting to USD 550 million in two tranches of 2-week tenor and 3-month tenor.

It is the first time that the IILM reissued its sukuk with the shortest tenor of 2-week; the IILM previously issued a 3-week sukuk in May 2019 and is regularly reissuing 1-month sukuk since January 2019.

The details of today’s reissuance are as follows: USD 250 million with 2-week tenor at a profit rate of 2.48%; and USD 300 million with 3-month tenor at a profit rate of 2.40%.

The two series of the IILM sukuk that were issued today offered two different tenors of 2-week and 3-month. The demand for the two sukuk series reached a bid-to-cover ratio of 235% for both the 2-week and the 3-month.

The 3-month tenor profit rate is 8 basis points lower compared to the 2-week issued on the same day, reflecting the global sentiment over the current market conditions.

The profit rate achieved for the 2-week sukuk is 2.48% compared to the indicative pricing guidance range of 49%-2.55% while the profit rate achieved for the 3-month sukuk is 2.40% compared to the indicative pricing guidance range of 2.49%-2.55%.

Purchases by Islamic Primary Dealers (PDs) in the primary auction amounted to 52% and 51% for the 2-week and 3-month sukuk.

In terms of geographical distribution, the allocation of GCC-based PDs stood at 68% and 56% of the 2-week and 3-month sukuk respectively whereas Asia-based PDs were allocated 32% and 34% of the 2-week and 3-month sukuk The PDs based in other jurisdictions received 10% for the 3-month sukuk.

Source Salaam Gateway

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