The Ministry of Finance (MoF), as the issuer, in collaboration with the Central Bank of the UAE (CBUAE) as the issuance and payment agent, announced the results of the auction for Islamic Treasury Sukuk (T-Sukuk) denominated in UAE dirhams, amounting to Dh1.1 billion. This issuance is part of the Islamic treasury sukuk programme for the third quarter of 2024, as published on the Ministry’s website.
The auction saw strong demand from the eight primary bank dealers for the tranche maturing in May 2027 and the new five-year tranche maturing in September 2029. A total of Dh5.07 billion in bids were received, exceeding the subscription volume by 4.6 times. The success of the auction is reflected in the competitive market prices achieved, with a yield to maturity (YTM) of 3.67 per cent for the tranche maturing in May 2027 and 3.65 per cent for the tranche maturing in September 2029, with a spread of 13 to 15 basis points over US Treasury bonds of similar maturities at the time of issuance.
It is worth noting that the local currency-denominated Islamic Treasury Sukuk supports the development of a UAE dirham-denominated yield curve, offering secure investment alternatives for investors. This contributes to enhancing the competitiveness of the local debt capital market, improving the investment environment, and supporting the sustainability of economic growth.
You may also like
Caught in the Act: Delhi Police Foil Jewelry Heist, Injured Thieves Apprehended in Dramatic Chase
Islamist Groups Oppose Durga Puja: No Idol Immersion, No Worship Allowed, Say Protesters
How Mustafa Ghouse Transitioned From Tennis Court To Helming VC Firm
Arunachal hostel warden sentenced to death for sexually assaulting 21 children