The International Islamic Liquidity Management Corporation (IILM) issued a short-term sukuk, whilst the Central Bank of Bahrain surprised the market with a long term 10-year issuance.

Regulars Return to Market

The International Islamic Liquidity Management Corporation (IILM) returned to the market this week with an $860 million issuance. The Malaysia based IILM sells its short term sukuk by means of auctions through its primary dealers with this weeks auction being well received attracting orders of USD1.743 Billion from 11 orders,

The Central Bank of Bahrain (CBB) which tends to issue short term sukuk surprised the market with a long term 10 year local currency issuance for BHD 200 million (around US $530 million) at a profit rate of 5%. The CBB is looking to build a longer term yield curve and earlier this year issued a BHD 100 million 3 year issuance at a profit rate of 3%, whilst its short term issuances tend to be offered at profit rates of 0.75% to 1%.

APICORP Sukuk Programme

Saudi major Arab Petroleum Investments Corporation (“APICORP”) announced a US $3.0 billion Sukuk issuance programme which Moody’s investor service assigned a provisional Aa3 stable rating. The issuance will be through the Cayman Islands SPV APICORP Sukuk Limited.

The programme will use a hybrid structure with the proceeds to be used by the Issuer to acquire a portfolio of assets comprised of no more than 49 percent in intangible assets and/or Shari’a-compliant commodities and no less than 51 percent in Ijara assets, sukuk, and/or other tangible assets.