IILM to auction Sukuk worth US$860 million on the 20th January - IFN

IILM to auction Sukuk worth US$860 million on the 20th January

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GLOBAL: Malaysia-based International Islamic Liquidity Management (IILM) has announced the issuance of a short-term Sukuk, part of its US$2 billion Islamic debt program. To be issued at US$860 million, the IILM short-term trust certificates will carry a maturity period of three months and mature on the 23rd April. The auction will be conducted on the 20th January through the Malaysian central bank’s Fully Automated System for Issuing/Tendering. The bid will subsequently close on the 23rd January. The IILM issued its inaugural Sukuk, worth US$490 million, in August 2013, which was reportedly fully subscribed. The deal also recently won the Islamic Finance news award for ‘Deal of the Year’ and ‘Sukuk Deal of the Year’. The facility was said to have met the market demand for highly rated short-term Shariah compliant cross-border liquidity instruments. It also complemented the intermediate and long-term Sukuk currently available in the market. The US-dollar short-term cross-border Sukuk was able to address the challenges faced by Islamic financial institutions in managing their liquidity more effectively and efficiently. The IILM is an organization established in 2010 to facilitate cross-border liquidity management among Islamic financial institutions. It seeks to provide Shariah compliant instruments, on commercial terms, to suit the varying liquidity needs of these institutions. Current members of the IILM Governing Board include the central banks of Indonesia, Kuwait, Luxembourg, Malaysia, Mauritius, Nigeria, Qatar, Turkey, the UAE, and the IDB Group.