The International Islamic Liquidity Management Corporation ( IILM ) has completed the reissuance of short-term sukuk amounting to US$1.18 billion and the new issuance of US$105 million of similar notes across five tenors.

The sukuk were competitively priced at 3.8% for US$130 million for the two-week tenor; 3.85% for US$310 million for one month; 3.91% for US$560 million for three months; 3.85% for US$250 million for six months; and 3.50% for US$40 million for 12 months.

The auction saw a robust participation from the IILM’s network of primary dealers alongside a diverse range of institutional investors across multiple jurisdictions. Total bids reached US$3.09 billion, translating into an average bid-to-cover ratio of 2.39 times. According to the IILM, this reflects continued investor confidence in its hiqh-quality, short-dated Islamic instruments amid evolving global market conditions.

“The recent developments in the Middle East have materially heightened geopolitical risks and injected a renewed layer of uncertainty across global financial markets,” says IILM chief executive officer Mohamad Safri Shahul Hamid. “The immediate impact has been reflected in increased volatility across funding markets, currency movements, and energy prices, with risk sentiment turning more cautious as investors reassess exposures and rebalance portfolios.”

Against this backdrop, the IILM says it has continued to navigate global market turbulence by successfully executing its latest issuance in an otherwise subdued global sukuk and bond market. 

“Our instruments are specifically structured to support Islamic banks in maintaining resilient liquidity buffers under Basel III requirements, particularly in meeting liquidity coverage ratio ( LCR ) standards while preserving high credit quality and active secondary market tradability,” Shahul Hamid says.

“We will continue to work closely with our member central banks and primary dealers to ensure consistency of issuance, market depth and investor confidence – especially during periods when stability, predictability and market reassurance are most needed.”

The latest transaction marks the IILM’s fifth sukuk since the start of the year, bringing total issuances in 2026 to US$5.77 billion across 22 issuances of varying maturities. All issuances were conducted under the IILM’s US$8.5 billion short-term sukuk issuance programme, rated “A-1” by S&P Global Ratings and “F1” by Fitch Ratings.

The sukuk were distributed by a diversified network of 16 primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, AlRayan Bank, Boubyan Bank, CIMB Islamic Bank Berhad, Dukhan Bank, First Abu Dhabi Bank, Golden Global Investment Bank, Jaiz Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic Berhad, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank, and Standard Chartered Bank.