Abu Dhabi, UAE– The first auction of the UAE treasury bond program in 2023 has been oversubscribed by 6.2 times, receiving bids worth AED6.85 billion ($1.76 billion), WAM reported.
In 2022, the Ministry of Finance, the issuer, had issued bonds totaling AED 9 billion across tenors of two years, three years and five years.
The strong demand was seen across both tranches with a final allocation of AED 550 million for the 2-year tranche and AED 550 million for the 5-year tranche, with a total of AED 1.1 billion for issuance in the first auction in 2023.
The report said the success is reflected in the attractive market driven price, which was achieved by a spread of a 10 bps for the 2-year tranche, and a spread of 15 bps over for the 5-year tranche – both over the applicable US Treasury benchmark.
This auction followed the practice of re-opening the T-Bonds which helps in building up the size of individual bond issues and improve liquidity in the secondary market.
The T-Bonds program contributes to building the UAE-dirham-denominated yield curve, strengthening the local debt capital market, developing the investment environment, providing safe investment alternatives for investors as well as supporting sustainable economic growth.
