Islamic finance body IILM reissues $490m sukuk
Kuala Lumpur, February 25, 2014
The Malaysia-based International Islamic Liquidity Management Corp (IILM) reissued $490 million in maturing three-month sukuk on Tuesday, selling them to nine primary dealers in Asia, the Middle East and Europe, it said.
The sukuk were auctioned at an average yield of 0.55485 per cent, compared to 0.55635 percent when it sold $860 million of three-month sukuk on Jan. 20.
The IILM, owned by a consortium of central banks from Asia, the Middle East and Africa, seeks to help Islamic banks manage their short-term funding needs by easing their shortage of liquid, investment-grade financial instruments.
Meanwhile, Islamic Development Bank said it was aiming to price a benchmark-sized Islamic bond issue on Thursday after releasing initial price guidance for a five-year deal.
The supranational lender set initial guidance at mid-to-high 20s over midswaps, , a document from lead managers showed on Tuesday.
While no definitive size has been set for the issue, the first from the AAA-rated bank since May, the document said that it was expected to be benchmark-sized - which is traditionally understood to mean in excess of $500 million.
The banks arranging the transaction are CIMB, Commerzbank, First Gulf Bank, HSBC, Natixis, National Bank of Abu Dhabi and Standard Chartered.-Reuters