The International Islamic Liquidity Management Corporation (IILM) is a Kuala Lumpur-based institution, set up on 25 October 2010 by central banks and a multilateral, that issues short-term US dollar sukuk so Islamic banks can park and manage cash without using interest-bearing instruments. Its issuance programme stands at US$8.5 billion, with US$6.4 billion outstanding in January 2026, according to the IILM.
IILM at a glance
| Established | 25 October 2010 |
| Headquarters | Kuala Lumpur, Malaysia |
| Governing Board members | Central banks and monetary agencies of Indonesia, Kuwait, Malaysia, Mauritius, Nigeria, Qatar, Türkiye and the UAE, plus the ICD |
| Programme size | US$8.5 billion short-term sukuk programme |
| Ratings | A-1 (S&P) and F1 (Fitch) |
| CEO | Mohamad Safri Shahul Hamid |
What problem does the IILM solve?
Every bank holds cash it does not need today but may need next week. Conventional banks lend it overnight to other banks or buy short-dated treasury bills, both of which pay interest. Islamic banks cannot use those tools, so they need Shariah-compliant alternatives that are just as safe and easy to trade.
The IILM was created to fill that gap with a high-quality, tradable, Shariah-compliant instrument. Its sukuk are short-dated, rated in the top short-term category and issued in US dollars, which makes them usable by Islamic banks in many countries at once. Zeti Akhtar Aziz, then governor of Bank Negara Malaysia, was among the central bankers who backed its creation, as we note in our profile of her career.
How does the IILM sukuk programme work?
The IILM issues short-term sukuk certificates under a single programme. It sells new series through regular auctions with tenors of one, three, six and twelve months. A network of primary dealers buys at auction and then distributes and trades the paper. In January 2026 the IILM listed 15 primary dealers, including Abu Dhabi Islamic Bank, Maybank Islamic, Qatar Islamic Bank and Standard Chartered.
Its first auction of 2026, held on 13 January, shows how it works in practice:
- US$1.3 billion was reissued across four tenors.
- The one-month tranche (US$460 million) priced at 3.81% and the three-month tranche (US$635 million) at 3.84%.
- Bids totalled US$2.915 billion, an average bid-to-cover ratio of 2.24 times.
The IILM described 2025 as a record-breaking year for its issuance.
Who is the IILM for?
Its direct users are Islamic banks, Islamic windows of conventional banks, takaful operators and central banks that need a safe place for short-term US dollar liquidity. Retail investors do not buy IILM sukuk directly. For readers following the industry, IILM auction results are a useful signal of how much spare dollar liquidity Islamic banks hold and what short-term Shariah-compliant yields look like.
How is the IILM different from the IFSB and the IsDB?
The three are often mentioned together. The IFSB sets prudential standards. The Islamic Development Bank finances development projects. The IILM does neither: it is a market institution that issues liquidity instruments. Its link to the IsDB Group runs through the ICD, which sits on its Governing Board.
How to follow or work with the IILM
Auction announcements, results and investor presentations are published on the official site at iilm.com. Institutions interested in buying the sukuk usually do so through one of the primary dealers.
FAQ
International Islamic Liquidity Management Corporation.
In Kuala Lumpur, Malaysia, which hosts the organisation.
A-1 by S&P and F1 by Fitch Ratings, both top-tier short-term ratings.
No. They are sold through primary dealers to financial institutions.
