IslamicFinance.de

The Islamic Development Bank aims to issue its first short-term sukuk this year, and is studying how it might start to guarantee Islamic bond issuance by member countries. A lack of short-term paper has been a significant constraint on the development of Islamic finance globally. The Malaysia-based International Islamic Liquidity Management Corp began trying to fill that gap last year with issues of three-month sukuk; it now has $1.35 billion outstanding. The IDB hopes to join the IILM in issuing short-term instruments this year. They could come in the form of 30-, 90-, 180- or 360-day sharia-compliant securities. The IDB is also looking to do longer tenors, however, the wider market isn't ready for longer-term Islamic bonds yet.