The International Islamic Liquidity Management Corporation ( IILM ) has reissued short-term sukuk amounting to US$1.02 billion across three tenors.

The issuances were priced competitively at 4.22% for US$580 million for the one-month tenor; 4.12% for US$340 million for the three-month tenor; and 3.95% for US$100 million for the six-month tenor.

The transaction marks the IILM’s 17th sukuk auction this year, bringing total issuances to US$17.63 billion across 52 sukuk of various tenors. This has far surpassed the full-year total of US$13.01 billion in 2024.

The auction attracted robust demand from the IILM’s network of primary dealers and a diversified base of global investors, generating total bids of US$2.3 billion and achieving a strong average bid-to-cover ratio of 2.3x.

“The strong performance reflects the continued confidence of our investors in our issuance programme, as well as our ability to respond effectively to the liquidity management needs of Islamic financial institutions worldwide,” comments IILM chief executive officer Mohamad Safri Shahul Hamid.

“Despite the evolving market dynamics and anticipation of a possible rate cut by the US Federal Reserve later this month, investor appetite for the IILM’s US dollar-denominated sukuk remains robust, reaffirming their appeal as high-quality liquid assets within the global Islamic finance ecosystem.”

The issuance forms part of the IILM’s US$6 billion short-term sukuk issuance programme, rated “A-1” ( S&P ) and “F1” ( Fitch Ratings ).

The IILM’s short-term sukuk is distributed by a diversified and growing network of primary dealers globally, namely 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, Kuwait Finance House, Kuwait International Bank, Maybank Islamic Berhad, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank, and Standard Chartered Bank.

The IILM is a regular issuer of short-term sukuk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services. The IILM will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.