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Islamic finance body IILM takes sukuk programme above US$2b
[KUALA LUMPUR] The Malaysia-based International Islamic Liquidity Management Corp (IILM) has increased the size of its Islamic bond programme above the US$2 billion mark for the first time, after auctioning two sukuk tranches this week.
The IILM auctioned US$490 million worth of three-month sukuk and US$500 million of six-month sukuk on Tuesday with settlement set for Friday, the organisation said in a central bank filing.
It is only the second time the IILM has issued six-month paper. This would see its outstanding sukuk programme, rated A-1 by Standard and Poor's, reach US$2.05 billion from US$1.85 billion.
The IILM, a consortium of central banks from Asia, the Middle East and Africa, began the programme in 2013 to address a shortage of instruments that Islamic banks can use to manage short-term liquidity.
It has said it may eventually expand issuance to US$2 billion or more; the programme permits maturities of up to one year.