IslamicFinance.de

The International Islamic Liquidity Management Corp (IILM) plans to expand issuance of sukuk beyond its current short-term programme to address latent demand from Islamic banks. Establishing a new medium-term programme would allow the IILM to offer a wider range of highly liquid financial instruments. The IILM currently has around $3 billion in outstanding sukuk and it could gradually increase this to between $3.5 to $4 billion, depending on consistency of demand. Around 60% of demand for IILM sukuk comes from Islamic banks in Gulf countries with the rest split across Asia and international banks. But there is also potential for IILM sukuk in non-member countries, such as Oman and Britain as well as jurisdictions such as Hong Kong and Singapore.

#Malaysia-based International Islamic Liquidity Management Corp (IILM) has lengthened maturities in its Islamic bond programme by auctioning $500 million of four-month sukuk. Previously, the IILM has issued three-month and six-month papers, which were introduced to manage short-term funding needs. The IILM sold the four-month sukuk at a profit rate of 1.37389%, attracting 17 bids worth a combined $1.3 billion. It also sold $840 million of three-month sukuk at a profit rate of 1.24411%, attracting orders of $1.6 billion via 14 bids. The issues were bought by 11 primary dealer banks.

The new Chief Executive of International Islamic Liquidity Management Corp (IILM) wasrecently made known by the company. Professor Datuk Rifaat Ahmed Abdel Karim comes to replace Mahmoud Abu Shamma. Before that, Professor Datuk Rifaat served as inaugural Secretary General for both the Accounting & Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Islamic Financial Services Board (IFSB). Moreover, he was involved in the establishment of the IILM in October 2010.

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