Standard Chartered closes out landmark sukuk issuance
30 August 2013
News, Global, Malaysia
By Asia Asset Management
Standard Chartered Bank announced on August 29 the closure of a landmark inaugural sukuk bond issuance from the International Islamic Liquidity Management Corporation (IILM), the world’s newest supranational.
The bank is a primary dealer for the US$490 million short-term sukuk and is the only global bank in IILM’s primary dealer network.
IILM is headquartered in Kuala Lumpur. Bank Negara Governor Zeti Akhtar Aziz was the first governing board chairperson and is currently the chairperson of its board executive committee.
Osman Morad, managing director and CEO, Standard Chartered Bank Malaysia, said: “We are proud to be the only global bank to be appointed a primary dealer for the programme. It demonstrates our ‘Here for good’ brand promise as we extend our commitment to support financial institutions, markets and regulators across our footprints in Asia, Africa and the Middle East. Our commitment to the IILM programme showcases our ability as the only global bank that offers end-to-end Islamic financial solutions across multiple locations.”
Leon Koay, head of global markets and co-head of wholesale banking, Standard Chartered Bank Malaysia, said: “This is a significant milestone as the first Shariah-compliant US dollar-denominated short-term highly rated financial instrument in the market to be issued at maturities below one year. It addresses a pressing need for dollar-denominated Islamic liquidity instruments on the short end. IILM sukuk will be tradable globally via Euroclear and will be an elegant complement to the long and medium term sukuk currently available in the global Islamic financial market.”
The landmark issuance carries an A-1 rating by Standard & Poor’s and is backed by Shariah compliant sovereign assets.
It is the first tranche of an approved US$2 billion programme by the IILM to create US dollar cross-border liquidity instruments for use by Islamic financial institutions globally.
Shareholders of the IILM comprise central banks and monetary agencies as well as multilateral institutions.
Current members of the IILM Governing Board are the central banks and monetary agencies of Indonesia, Kuwait, Luxembourg, Malaysia, Mauritius, Nigeria, Qatar, Turkey, the United Arab Emirates and the Islamic Development Bank Group.
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