The UAE Ministry of Finance sold Dh1.1 billion ($299.5 million ) of bonds under the Islamic Treasury Sukuk (T-Sukuk) programme for Q2 2024, the ministry revealed in a statement.
The auction witnessed a strong demand through the eight primary dealers for the 3-year and 5-year tranches of the Islamic T-Sukuk.
The Ministry received bids worth Dh9.81 billion and an oversubscription by 8.9 times.
The success is reflected in the attractive market-driven prices, with a Yield to Maturity (YTM) of 4.57% on the 3-Year tranche and 4.44% on the 5-Year tranche, representing a 5bps price tightening below US Treasuries with similar maturities at the time of the auction.
The Islamic T-Sukuk issuance programme “will contribute to building the UAE dirham-denominated yield curve, providing safe investment alternatives for investors, strengthening the local debt capital market, developing the investment environment, as well as supporting sustainable economic growth”, the Ministry said in a statement.
