‘IILM sukuk will do well’

STANDARD Chartered Bank (StanChart) is optimistic that International Islamic Liquidity Management Corp (IILM)’s inaugural US$ 490 million (RM1.61 billion) sukuk will be widely accepted, given its wide network and the high demand.

StanChart head of global markets and co-head of wholesale banking, Leon Koay, said IILM’s sukuk is the first syariah-compliant US dollar-denominated financial instrument to be issued at a maturity period of less than one year.

“The demand from Malaysia is clearly there, as well as (that) from West Asia. When it comes to US dollar liquidity that is in Islamic instruments, we see the trend continuing to grow.

“We (StanChart) believe that this paper will be well distributed and widely traded,” he said after announcing the bank’s partnership with IILM, here, on Thursday.

IILM appointed StanChart as one of the primary dealers for the first tranche of its US$ 2 billion sukuk programme.

StanChart is the only international bank in IILM’s primary dealers network.

The sukuk programme is aimed at creating US dollar cross-border liquidity instruments for use by Islamic financial institutions globally.

It can help address the challenges faced by Islamic financial institutions globally with regard to the availability of short-term financial instruments to manage their liquidity.

The landmark issuance carries a Standard and Poor’s “A-1” rating and is backed by syariah-compliant sovereign assets.

IILM is an international institution established by central banks, monetary agencies and multilateral organisations in 2010. Bernama

Business Times : nation

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