Islamic Finance Body IILM Expands Outstanding Sukuk Issuance

DUBAI- The Malaysia-based International Islamic Liquidity Management Corp (IILM) has expanded the amount of its outstanding sukuk under a programme designed to give sharia-compliant banks a cross-border tool for liquidity management.

The IILM auctioned $590 million of three-month sukuk at an average yield of 0.53285 percent, comprising $390 million of reissuance and $200 million of new issuance, it said in a statement on Tuesday.

That increased outstanding sukuk from the IILM, a consortium of central banks from Asia, the Middle East and Africa, to $1.85 billion from $1.65 billion. The IILM has said it may eventually expand issuance to $2 billion or more.

Tuesday’s auction drew 13 bids worth $926 million, according to the website of Malaysia’s central bank.

Originally published on www.reuters.com