Kuwait Finance House (KFH) participated as a primary dealer for short-term sukuk issued by the International Islamic Liquidity Management IILM worth USD 1.850 bln. KFH is considered as the most active dealer in the market in terms of acquisition and volume traded which reflects the bank’s position as a flagship in the secondary sukuk market and a key player in motivating Islamic and conventional financial institutions locally and globally to participate in theses issuances; thus contributing in developing the Islamic finance industry globally.
“IILM has issued since last July 3 issuances worth USD 490 mln, USD 500 mln and USD 860 mln respectively in which KFH has the lion's share of them. Such volume is yet another outstanding achievement to be added to KFH performance as a primary dealer in Kuwait and a global Sukuk market maker” said AbdulWahab Al-Roshoud, Acting Chief Treasury Officer at KFH.
He added, in a press release that the average trading of those 3 issuances in the secondary market surpassed 50% of their volume which is considered high in comparison with the rest of sukuk, indicating that this reflects the market’s strength and its contributions in increasing the liquidity.
Al-Roshoud, explained that KFH has a long track-record of participating in IILM’s issuances since its inception where KFH was the first bank in Kuwait nominated as a primary dealer. He reiterated that IILM’s sukuk lured Islamic and conventional banks to take part in the trading which is in line with KFH’s endeavors to improve Islamic finance industry at the global level. KFH forecasts that several local and global banks will participate in IILM’s upcoming sukuk as primary dealers noting that this boosts Islamic finance, strengthens its pillars and signifies sukuk as an alternative Islamic product of conventional bonds.
Al-Roshoud continued: “Sukuk are the most significant and powerful low risk investment finance tool which contributes effectively to the process of encountering liquidity crises. Sukuk are characterized as instruments of high liquidity, active secondary market, flexibility and good returns. They play as a significant investment outlet for banks and an effective tool to manage liquidity and increase investors’ profits.”