emirates7 - The Ministry of Finance (MoF), in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and paying agent, has announced the results of the Islamic Treasury Sukuk (T-Sukuk) auction, valued at AED 1.1 billion and denominated in UAE dirhams.

This issuance is part of the Islamic T-Sukuk programme for the first quarter of 2025, as detailed on the Ministry's website.

The auction attracted robust interest from the eight primary dealers for both tranches, which mature in May 2027 and September 2029, with total bids reaching AED 6.91 billion—an oversubscription of 6.3 times.

The strong market response is evident in the competitive, market-driven pricing, with a Yield to Maturity (YTM) of 4.32% for the May 2027 tranche and 4.43% for the September 2029 tranche. These yields represent spreads of 7 and 10 basis points, respectively, above US Treasuries with comparable maturities at the time of the auction.

The Islamic T-Sukuk programme aims to establish a UAE dirham-denominated yield curve, offering secure investment options, enhancing the local debt capital market, fostering an improved investment climate, and supporting sustainable economic growth.