IslamicFinance.de

Demand for Islamic bonds issued by the International Islamic Liquidity Management Corp (IILM) is growing, signaling widening popularity for a programme designed as a cross-border tool for Islamic banks to manage their liquidity needs. The Kuala Lumpur-based body is a likely beneficiary of a decision by Malaysia's central bank to wind down its own sales of sukuk, which could in turn spur the IILM to expand its $3 billion issuance programme. A boost in demand could help widen the membership base of the IILM and encourage regulators across Asia and the Middle East to approve the use of IILM sukuk by their Islamic banks. Growing popularity of IILM sukuk could also improve its secondary market activity.