Standard Chartered closes sukuk deal with IILM
Kuala Lumpur, August 29, 2013
Standard Chartered Bank has closed a $490-million short term sukuk bond issuance from the Malaysia-based International Islamic Liquidity Management Corporation (IILM).
The bank is a primary dealer for the sukuk and is the only global bank in IILM’s primary dealer network. It was nominated by the Central Bank of Nigeria, said a statement.
Leon Koay, head of Global Markets and co-head of Wholesale Banking, Standard Chartered Bank Malaysia, said: “This is a significant milestone as the first Shariah compliant US dollar denominated short-term highly rated financial instrument in the market to be issued at maturities below one year.
“It addresses a pressing need for dollar denominated Islamic liquidity instruments on the short end. IILM sukuk will be tradable globally via Euroclear and will be an elegant complement to the long and medium term Sukuk currently available in the global Islamic financial market.”
The landmark issuance carries an A-1 rating by Standard & Poor’s and is backed by Shariah compliant sovereign assets, said the statement.
It is the first tranche of an approved $2 billion programme by the IILM to create US dollar cross border liquidity instruments for use by Islamic financial institutions globally, it said.
The sukuk aims to help address the challenges that Islamic financial institutions have been facing globally with regard to the availability of highly rated short-term financial instruments to manage their liquidity compared to their conventional counterparts.
Shareholders of the IILM comprise central banks and monetary agencies as well as multilateral institutions. - TradeArabia News Service