News Column

IILM helps short term liquidity

January 21, 2014 (Paul McNamara)

One of the major factors holding back the development of the Islamic banking industry is the paucity of short term liquidity instruments. While Bahrain has led the charge on this front with its Sukuk Al Salam programme, Malaysia is now catching up. KL-headquartered International Islamic Liquidity Management Corporation says that it has successfully conducted a Sukuk issuance programme by selling $860m of three-month Sukuk at a yield of 0.556 percent. Short term instruments allows banks and other finance houses to manage their cash reserves in a manner that is comparable to conventional banks. The IILM issue was sold to nine primary dealers from Asia , the Middle East and Europe and brings the total amount of the IILM's outstanding Sukuk to $1.35bn .

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Source: Islamic Globe, The (UAE)

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