IILM Company Profile

Background

The International Islamic Liquidity Management Corporation (IILM) is a unique international organization established on October 25, 2010, by central banks and a multilateral institution. Its primary mission is to create and issue Shari’ah-compliant financial instruments to facilitate effective cross-border Islamic liquidity management. Headquartered in Kuala Lumpur, Malaysia, the IILM plays a pivotal role in enhancing cross-border investment flows, international linkages, and financial stability by providing liquid Shari’ah-compliant financial instruments for institutions offering Islamic financial services (IIFS).

Key Strategic Focus

The IILM's strategic focus centers on:

• Issuance of Shari’ah-Compliant Instruments: Developing and issuing high-quality, short-term Sukūk to meet the liquidity needs of IIFS globally.

• Cross-Border Liquidity Management: Facilitating effective liquidity management across borders for IIFS, thereby strengthening the global Islamic finance infrastructure.

• Market Development: Building a robust secondary market for IILM Sukūk and establishing a strong infrastructure of primary distribution and price discovery through market makers.

• Regulatory Collaboration: Fostering regional and international cooperation to build robust liquidity management infrastructure at national, regional, and international levels.

Financials and Funding

As a non-profit organization, the IILM's funding primarily comes from its member institutions, which include central banks and a multilateral organization. The IILM has issued a cumulative amount of USD 10 billion in short-term Sukūk, with an outstanding amount of USD 2 billion. The organization maintains an "A-1" short-term credit rating since 2013 and an "F1" short-term credit rating since September 2022.

Pipeline Development

The IILM's pipeline development focuses on:

• Sukūk Issuance: Regular issuance of short-term Sukūk to meet the liquidity needs of IIFS.

• Market Expansion: Expanding the distribution network and enhancing the secondary market for IILM Sukūk.

• Product Diversification: Developing a variety of Shari’ah-compliant instruments to cater to the diverse liquidity requirements of IIFS.

Technological Platform and Innovation

The IILM leverages advanced financial technologies to:

• Issuance Platforms: Utilize secure and efficient platforms for the issuance and management of Sukūk.

• Market Infrastructure: Develop robust market infrastructure to support the trading and settlement of Sukūk.

• Regulatory Compliance: Implement technologies that ensure compliance with international financial regulations and Shari’ah principles.

Leadership Team

The IILM's leadership comprises:

• Governing Board: Includes governors and senior officials from member central banks and the Islamic Corporation for the Development of the Private Sector (ICD).

• Executive Committee: Oversees the day-to-day operations and strategic initiatives of the IILM.

• Shari’ah Committee: Ensures that all financial instruments and operations comply with Shari’ah principles.

Competitor Profile

The IILM operates in a niche segment of the financial services industry, focusing on Shari’ah-compliant liquidity management. Its primary competitors include:

• Central Banks and Multilateral Organizations: Other institutions that issue Shari’ah-compliant instruments for liquidity management.

• Islamic Financial Institutions: Banks and financial entities that develop their own liquidity management solutions.

• Regional Liquidity Management Platforms: Organizations that provide similar services within specific regions.

Strategic Collaborations and Partnerships

The IILM collaborates with:

• Member Institutions: Central banks and the ICD, which provide governance and strategic direction.

• Market Makers: Financial institutions that facilitate the trading and distribution of IILM Sukūk.

• Regulatory Bodies: Ensuring compliance with international financial regulations and Shari’ah standards.

Operational Insights

The IILM's operational strategy focuses on:

• Market Penetration: Expanding the reach of IILM Sukūk to a broader range of IIFS globally.

• Liquidity Enhancement: Improving the liquidity and tradability of Sukūk in the secondary market.

• Regulatory Alignment: Ensuring all operations align with international financial standards and Shari’ah principles.

Strategic Opportunities and Future Directions

The IILM aims to:

• Product Innovation: Develop new Shari’ah-compliant instruments to meet evolving market needs.

• Geographical Expansion: Increase the issuance and distribution of Sukūk in emerging markets.

• Technological Advancement: Adopt cutting-edge technologies to enhance operational efficiency and market accessibility.

Contact Information

• Official Website: iilm.com

• LinkedIn: IILM - International Islamic Liquidity Management

• Headquarters: Kuala Lumpur, Malaysia