The International Islamic Liquidity Management Corporation ( IILM ) has reissued short-term sukuk amounting to US$1.3 billion in its first auction for 2026.

The multi-tenor sukuk were priced competitively at 3.81% for US$460 million for the one-month tenor; 3.84% for US$635 million for three months; 3.82% for US$155 million for six months; and 3.45% for US$50 million for 12 months.

The auction attracted strong and broad-based demand from the IILM’s network of primary dealers as well as a wide range of institutional investors across multiple jurisdictions, registering total bids of US$2.91 billion and an average bid-to-cover ratio of 2.24 times.

“The continued robust participation across all tenors reflects sustained market confidence in the IILM’s short-term sukuk as trusted, high-quality liquidity management instruments,” says IILM chief executive officer Mohamad Safri Shahul Hamid, noting that the successful auction builds on the strong momentum achieved during a record-breaking year in 2025, when it issued a total of US$22.9 billion in short-term sukuk, up 76% from the previous year.

“Despite ongoing volatility in global financial markets and elevated yield conditions, the auction achieved competitive profit rates and attracted strong demand from a diversified investor base.

“The scale and depth of participation reaffirm the IILM’s role as a reliable and responsive issuer, committed to providing regular and well-structured short-term sukuk that meet the evolving liquidity needs of Islamic financial institutions worldwide as we enter the new year,” he adds.

The issuance forms part of the IILM’s US$8.5 billion short-term sukuk issuance programme, which is rated “A-1” by S&P and “F1” by Fitch Ratings. The total amount of IILM’s sukuk outstanding stands at US$6.4 billion.

The sukuk are distributed by a diversified and growing network of primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Affin Islamic Bank, AlRayan Bank, Boubyan Bank, CIMB Islamic Bank Berhad, Dukhan Bank, First Abu Dhabi Bank, Golden Global Investment Bank, Kuwait Finance House, Kuwait International Bank, Maybank Islamic Berhad, Meethaq Islamic Banking from Bank Muscat, Qatar Islamic Bank, and Standard Chartered Bank.

The IILM is a regular issuer of short-term sukuk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services. The company says it will continue to reissue short-term liquidity instruments monthly as scheduled in its issuance calendar.