The International Islamic Liquidity Management Corporation ( IILM ) on October 20 set a new record by completing the largest-ever short-term sukuk auction amounting to US$1.546 billion.

The transaction, a new milestone in IILM issuance history, attracted approximately US$3.49 billion in orders, achieving an oversubscription ratio of 2.26 times – demonstrating the depth of investor demand for IILM’s short-term Islamic liquidity instruments amid heightened global market uncertainty.

The record-breaking offering was issued across five tenors, comprising:

• US$210 million at 4.20% for two weeks;
• US$397 million at 4.25% for one month;
• US$605 million at 4.34% for three months;
• US$253 million at 4.50% for six months; and
• US$81 million at 4.85% for 12 months.

The issuance was executed against a backdrop of escalating geopolitical tensions in the Gulf, disruptions to regional energy supplies and shipping routes, elevated oil prices and persistent inflationary pressures. Amid heightened market volatility and evolving monetary policy expectations, IILM continues to play a central role in supporting the short-term liquidity management needs of Islamic financial institutions worldwide.

IILM CEO Mohamad Safri Shahul Hamid says the ability to execute a record US$1.546 billion transaction, supported by about US$3.49 billion in investor demand, reflects the depth of IILM’s investor base and the strength of its issuance platform.

“It further reinforces IILM’s role as a consistent, globally distributed provider of short-term Islamic liquidity instruments, particularly when market conditions are increasingly demanding,” he adds.

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Year to date, IILM has issued US$25.78 billion across 98 sukuk series, reflecting the scale and continuity of its issuance activity in the international Islamic money market. All issuances were conducted under IILM’s US$8.5 billion short-term sukuk issuance programme, rated A-1 by S&P Global Ratings and F1 by Fitch Ratings.

IILM’s short-term sukuk are distributed globally through its network of 16 primary dealers, including Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, AlRayan Bank, Boubyan Bank, Bank Nizwa, CIMB Islamic Bank, Dukhan Bank, First Abu Dhabi Bank, Jaiz Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank and Standard Chartered.

Through its published issuance calendar, IILM remains committed to providing a regular, diversified supply of high-quality, Shariah-compliant short-term sukuk across tenors from two weeks to 12 months, supporting the liquidity management needs of Islamic financial institutions worldwide.