DUBAI Nov 26 The Malaysia-based International
Islamic Liquidity Management Corp (IILM) said it had expanded
the number of primary dealers handling its Islamic bond
programme to nine from seven, a step towards expanding
cross-border trade in its sukuk.
In August the IILM, a consortium of central banks from Asia,
the Middle East and Africa, conducted its first sukuk issue,
selling $490 million of three-month paper.
The issue was designed to meet a shortage of highly liquid,
investment-grade financial instruments which Islamic banks can
trade to manage their short-term funding needs. This shortage
has become a barrier to the further growth of Islamic finance.
On Tuesday, the IILM said it had conducted an auction to
resissue the sukuk as they matured, at an average yield of
0.5571 percent. The reissue was fully subscribed.
Abu Dhabi Islamic Bank, AlBaraka Turk,
CIMB Bank Bhd, Europe's KBL Private Bankers, Kuwait
Finance House, Malayan Banking Bhd (Maybank)
, National Bank of Abu Dhabi, Qatar National
Bank and Standard Chartered Bank acted as
primary dealers in the auction.