Maybank Islamic Bank among top 3 most active primary dealers for IILM Sukuk Programme 2022
16 Jan 2023 10:22pm
Image for illustrative purposes only - Maybank Islamic Bhd
IILM, an international organisation that develops and issues short-term Shariah-compliant financial instruments, said based on the total amount allocated at the primary level as of end-December 2022, a total of 37 sukuk issued for a cumulative amount of US$13.88 billion (US$1=RM4.31) with Maybank Islamic Bank joining Kuwait Finance House and First Abu Dhabi Bank as the top three primary dealers.
"For primary dealer activity and footprint in the secondary market, based on the total trading volume of US$2.23 billion as of end-December 2022, the top three primary dealers are Kuwait Finance House, First Abu Dhabi Bank and Al Baraka Turk,” it said in a statement today.
IILM said the ranking assessments took into account key aspects of primary dealers’ role in distributing the IILM sukuk at the primary level by reaching out to a broad investor base and to ensure the liquidity of the short-term Islamic instruments in the secondary market.
"Primary market appraisal is based on successful bids realised at auctions during the year, whereas secondary market activity is ranked based on turnover and percentage contribution in the secondary market.
It said the IILM short-term sukuk programme is rated "A-1” by S&P and "F1” by Fitch Ratings.
"The total outstanding of the IILM sukuk stands at US$3.51 billion with a Shari’ah tradability ratio of 79 per cent tangible assets as of today,” it added.
Chief executive officer Dr Umar Oseni said that the steady growth of the cross-border Islamic liquidity management sector would not have been made possible without the solid participation of IILM’s primary dealer network
"The secondary market, especially, has seen a hive of activity with the total trading volume reaching US$2.23 billion as at the end of last year, which is the highest we have seen on an annual basis since inception,” he said. - BERNAMA
