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Sunday, 15 September 2013

KFH major trader with USD 490 mln in IILM sukuk program

KUWAIT, Sept 14 (KUNA) -- Kuwait Finance House (KFH) has participated, as a major trader, with USD 490 million in the first issuance of a short-term sukuk program released by the International Islamic Liquidity Management Corporation (IILM), Baitik's Treasury General Manager Abdulwahab Al-Roshood said Saturday.

In a press release, Al-Roshood noted that program is sharia compliant, tradable and able to provide sources to finance corporations and governments through new mechanisms.


He continued as saying that IILM has recently issued the first issuance for 3 months with the participation of 8 gulf and foreign banks, including KFH. He added that sukuk issued by IILM enjoys the privilege of being short term, rated as the short-term highest credit rating A-1 by the international Standard and Poor's. It contributes in enhancing asset quality for participants and it is considered a source of good income due to its rewarding returns compared to its short term periods.


Al-Roshood explained that the IILM is a new corporation based in Malaysia. The goal behind establishing such corporation lies on the deployment of short-term Sovereign sukuk ranging from one month to one year with USD 2 billion program volume.


IILM aims to enhance cross-border investment flows, international linkages and financial stability. It was established on 25 October 2010, the current shareholders are from the central banks and monetary agency of Indonesia, Kuwait, Luxembourg, Malaysia, Mauritius, Nigeria, Qatar, Turkey, the United Arab Emirates and the Islamic Development Bank. 


(Kuwait News Agency / 14 Sept 2013)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

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