ABU DHABI, UAE – The United Arab Emirates, represented by the Ministry of Finance (MoF) as the issuer, in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and paying agent, has announced the results of the fifth auction of the Islamic Treasury Sukuks (T-Sukuks).
This is part of the T-Sukuks issuance program for 2023 as published on the ministry’s website.
The fifth auction of the UAE T-Sukuks program witnessed a strong demand through the eight primary dealers, with bids received worth US$1.57 billion (AED5.77 billion) and an oversubscription by 5.2 times.
The strong demand was on both the two- and three-year tranches.
The success is reflected in the attractive market-driven prices, which was achieved by a spread of 4 to 11 bps over US Treasuries with similar maturities.
The auction followed the practice of re-opening the two-year and three-year T-Sukuks, which help build up the size of individual Sukuk issuances over time and improve liquidity in the secondary market.
The T-Sukuks program 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.