It said a strong global investor demand led to a total order book of US$1.47 bil and a bid-to-cover ratio for the three sukuk series of 190%.
“With over 50 orders from diversified investors, the allocations across all tenors are concentrated within the Gulf Cooperation Council region accounting to circa 90% on average,” IILM said in a statement today.
The three issuances have been priced by the market as follows; US$300 mil of one-month tenor at 0.81%; US$300 mil of three-month tenor at 0.87%; and US$200 mil of six-month tenor at 0.85%, respectively.
The cut-off profit rates across all the sukuk came up far below February 2020 levels by at least 90 basis points, reflecting the massive decline of the global money-market rates.
Today’s auction completes the first-quarter issuances with a total of nine securities amounting to US$2.65 bil and representing close to 30% of all the US dollar sukuk issued globally year-to-date.
The IILM short-term sukuk programme is rated A-1 by Standard & Poor’s. The total of IILM sukuk outstanding is US$2.51 bil, with a Shariah tradability ratio of 71 % tangible assets. – March 12, 2020, Bernama
