Posted inIslamic Finance

UAE issues Dh 1.1 billion Islamic Treasury Sukuk

The bids received worth Dh6.32 billion, oversubscribing the issuance by 5.7 times.

The Ministry of Finance, as the issuing authority, in collaboration with the Central Bank of the UAE (CBUAE) has announced the results of the Dh1.1 billion Islamic Treasury Sukuk (T-Sukuk) Auction.

The auction is part of the Islamic T-Sukuk issuance programme for August 2024 as published on the ministry’s website.

The auction witnessed a strong demand through the eight primary dealers for the May 2026 and May 2027 tranches of the Islamic T-Sukuk, with bids received worth Dh6.32 billion, oversubscribing the issuance by 5.7 times.

The success is reflected in the attractive market-driven prices, with a Yield to Maturity (YTM) of 4.04% on the May 2026 tranche and 3.88% on the May 2027 tranche, representing a 0 to 9 bps above US Treasuries with similar maturities at the time of the auction.