emirates7 - The Ministry of Finance (MoF), in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and paying agent, announced the results of the Islamic Treasury Sukuk (T-Sukuk) auction, which raised AED 1.1 billion in UAE dirhams.
This issuance is part of the Islamic T-Sukuk programme for the fourth quarter of 2024, as outlined on the Ministry's website.
The auction saw strong demand from eight primary dealers for two tranches maturing in May 2027 and September 2029, with bids totaling AED 5.43 billion, resulting in an oversubscription of 4.9 times.
The auction's success was evident in the attractive market-driven pricing, with the Yield to Maturity (YTM) set at 4.30% for the May 2027 tranche and 4.38% for the September 2029 tranche. These yields represent a spread of 4 and 12 basis points above US Treasuries with similar maturities at the time of the auction.
This Islamic T-Sukuk issuance programme will help establish a UAE dirham-denominated yield curve, offer safe investment options, strengthen the local debt capital market, enhance the investment environment, and support sustainable economic growth.
This issuance is part of the Islamic T-Sukuk programme for the fourth quarter of 2024, as outlined on the Ministry's website.
The auction saw strong demand from eight primary dealers for two tranches maturing in May 2027 and September 2029, with bids totaling AED 5.43 billion, resulting in an oversubscription of 4.9 times.
The auction's success was evident in the attractive market-driven pricing, with the Yield to Maturity (YTM) set at 4.30% for the May 2027 tranche and 4.38% for the September 2029 tranche. These yields represent a spread of 4 and 12 basis points above US Treasuries with similar maturities at the time of the auction.
This Islamic T-Sukuk issuance programme will help establish a UAE dirham-denominated yield curve, offer safe investment options, strengthen the local debt capital market, enhance the investment environment, and support sustainable economic growth.