The UAE attracted Dh6.76 billion ($1.8 billion) in bids for its Islamic treasury bonds during for the third quarter of the year.
The country’s Q3 2024 sukuk programme auction was oversubscribed 6.1 times. It received strong demand from the eight primary dealer banks for the 3-year and 5-year tranches, with a significant increase in subscription volume, according to data from the UAE Ministry of Finance.
The Islamic Treasury Sukuk (T-Sukuk) offered a spread of 4.77% on the three-year tranche and 4.43% on the five-year tranche. The spreads on the Islamic bonds represent a 1 to 3 bps price tightening below comparable US Treasuries.
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.
The UAE Ministry of Finance had previously sold Dh1.1 billion ($299.5 million ) of bonds under the Islamic Treasury Sukuk (T-Sukuk) programme for Q2 2024.
