SYDNEY Feb 19 The Malaysia-based International
Islamic Liquidity Management Corp (IILM) will issue a $490
million three-month Islamic bond next week, after expanding its
issuance programme to $1.35 billion in January.
The auction of the three-month sukuk, rated A-1 by Standard
and Poor's, will be conducted on Feb. 25, according to a filing
lodged with Malaysia's central bank.
Last month, the IILM sold $860 million worth of three-month
paper, designed to meet a shortage of highly liquid,
investment-grade financial instruments which Islamic banks can
trade to manage their short-term funding needs.
Since the programme's launch, primary dealers have held on
to the IILM instruments after auction and there has been little
if any secondary market trade in them, an official at one of the
primary dealers told Reuters.
Shareholders of the IILM are the central banks of Indonesia,
Kuwait, Luxembourg, Malaysia, Mauritius, Nigeria, Qatar, Turkey
and the United Arab Emirates, as well as the Jeddah-based
Islamic Development Bank.
(Editing by Eric Meijer)