Wednesday 23, January 2019 BY WILLIAM MULLALLY
The International Islamic Liquidity Management Corporation (IILM) has successfully conducted its first auction for 2019 of a total USD 500 million short-term Sukūk in two different series of one-month tenor and two-month tenor.
The A-1 rated IILM Sukuk by Standard & Poor’s Rating Services were reissued a $200 million with a one-month tenor at 2.75 per cent profit rate; and a $300 million with two-month tenor at 2.83 per cent profit rate.
This is the first issuance of 1-month tenor since the IILM commenced its issuances in August 2013. According to IILM, purchases by Islamic Primary Dealers (PDs) in the primary auction amounted to 100 per cent and 52 per cent for two Sukuk issuances respsectively respectively. In terms of geographical distribution, Asia-based PDs were allocated 35 per cent of both the one-month and two-month Sukuk whereas GCC-based PDs were allocated 65 per cent and 55 per cent of the one-month and two-month Sukuk respectively. 10 per cent of the two-month Sukuk where allocated to others.
Abu Dhabi Islamic Bank, Al Baraka Turk, Barwa Bank, Boubyan Bank, CIMB Islamic Bank, First ABu Dhabi Bank, Kuwait Finance House, Maybank Islamic and Standard Chartered were among the primary dealers.