KUALA LUMPUR (Sept 8): The International Islamic Liquidity Management Corporation (IILM) has today successfully conducted an auction for a total issuance of US$900 million short-term A-1 rated sukuk in two series — one-month and three-month tenors.

In a statement, IILM said one was a US$400 million issuance of one-month tenor at 0.22%, while the other was a US$500 million issuance of three-month tenor at 0.43%.

The final profit rates of the two series are within the indicative pricing guidance for the one-month and three-month series, IILM said, adding this indicates an increasing interest in high quality sukuk from primary dealers and investors.

“The tender resulted in significant demand from Asian and Middle Eastern investors, with an orderbook that closed in excess of US$1.59 billion, representing an average oversubscription rate of 1.77 times,” it said.

With frequent monthly issuances throughout the year, IILM said it has achieved a total cumulative issuance amount of US$8.37 billion year-to-date, of which US$1.04 billion are new issuances.

This represents around 30% of the US dollar-denominated sukuk year-to-date globally, IILM said.

IILM said its short-term sukuk programme is rated “A-1” by S&P, and that its total sukuk outstanding is now at US$3 billion.