IILM: Liquidity management in motion

In November, the International Islamic Liquidity Management Corporation (IILM) successfully closed its 2018 issuances with a final three-month short-term Sukuk transaction amounting to US$600 million – achieving a tight profit rate of 2.83% and a substantial orderbook of US$1.62 billion, with a

Development Sukuk gain traction

It has been a busy month for Islamic issuance, and Sukuk activity has accelerated as we enter the fourth quarter and companies clamor to confirm funding in advance of year-end. But a new trend has quietly been gathering pace. A series of

Looking to Sukuk for regular short-term funding

An increasing number of corporates are taking advantage of Islamic capital markets’ strength to issue regular short-term commercial paper to meet their ongoing financing needs. Already a popular route for domestic firms, now overseas corporates such as Japan’s AEON are moving into

IFSB tackles new capital market standard

In a move that should bring joy to the hearts of corporate issuers everywhere, the Islamic Financial Services Board (IFSB) has confirmed that it is currently considering a draft proposal to regulate Shariah compliant capital market products. What does this mean? Simply

Retail Sukuk: A worthwhile exercise?

A supply chain finance provider in the UAE recently announced plans to launch one of the first ever corporate Sukuk directed at retail investors, in a pioneering move that could open up a whole new pool of liquidity for issuers seeking to

Danajamin: Who, what, why and where?

For corporates keen to raise capital in the public domain, a credit guarantee can be a valuable stepping stone – allowing them to obtain better rates at lower risk, and offering new entrants a tried and tested route to market. In 2009,

The Salam structure: Unusual but effective

This month we explore the simple yet sometimes controversial structure of Salam, usually defined as the sale of a specific commodity delivered at a fixed date in the future in return for full payment on spot. The contract offers versatility in terms