Islamic finance body IILM to expand sukuk issuance to $860 million

Malaysia-based consortium including Middle Eastern banks to expand Islamic bond program by $370m to $860m
Islamic finance body IILM to expand sukuk issuance to $860 million
By Reuters
Thu 16 Jan 2014 10:22 AM

Malaysia-based International Islamic Liquidity Management Corp (IILM) will expand its Islamic bond programme by $370 million to $860 million next week, increasing its issuance of short-term sukuk for the first time since its launch last year.

The IILM, a consortium of central banks from Asia, the Middle East and Africa, will conduct the auction of three-month sukuk on Jan. 20, according to a filing with Malaysia's central bank.

IILM sukuk are designed to meet a shortage of highly liquid, investment-grade financial instruments which Islamic banks can trade to manage their short-term funding needs.

The IILM sold $490 million worth of three-month paper in separate auctions in August and November, while its plans call for increasing issuance of sukuk to as much as $2 billion.

In November, the IILM also expanded the number of primary dealers handling its Islamic bond programme to nine from seven, adding Abu Dhabi Islamic Bank and CIMB Bank Bhd.

Shareholders of the IILM are the central banks of Indonesia, Kuwait, Luxembourg, Malaysia, Mauritius, Nigeria, Qatar, Turkey and the United Arab Emirates, as well as the Jeddah-based Islamic Development Bank.

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.