IILM Corp issues dollar denominated sukuk

By Marc Castro

Aug 26, 2013 10:52 AM EDT

The International Islamic Liquidity Management Corp, which is based out of Malaysia, announced on Monday that it had auctioned USD490 milion in sukuk bonds. This is the debut issue for the sukuk bond issue and the term of the bond was set at three months.

The sukuk was dollar denominated and was pegged at thirty basis points above the London Interbank Offered Rate or LIbOR. The said issue was fully subscribed according to a press statement issued by IILM. 

IILM was established back in October 2010 backed by central banks of countries in Asia, the Middle East and Africa. The said corporation aims to address a major drawback in financing in the Islamic world, the lack or shortage of very liquid, investment grade financial instruments that banks throughout the world can utilize to manage short term funding requirements.

In a statement, the corporation added, "The short-term sukuk will complement the intermediate and long-term sukuk currently available in the market."

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