Primary dealers of the International Islamic Liquidity Management Corp (IILM) said that after enjoying healthy demand for its recent debut Islamic bond, efforts were shifting to expand the distribution network of buyers.
The US$490 million, three-month sukuk was auctioned to seven primary dealer banks, as the IILM aims to address a shortage of financial instruments for Islamic banks to manage their short-term funding needs.
With the structure and approvals now in place, Malaysia-based IILM can shift its focus to establishing regular issuance, decide on future tenors and possibly expand its network.
"Ideally one of the next steps would be to develop an issuance calendar. They will develop a plan in relation to the other tenors," said Leon Koay, head of global markets and co-head of wholesale banking at Standard Chartered Malaysia, one of the seven primary dealers. "They've been approved for US$2 billion, they've got plenty of runway. With this landmark issuance out of the way, the rest of it would be easier."
source: Business Timzq