Islamic Treasury Bonds Auction for October 2024 Attracts Bids Worth AED 7.20 Billion

• Marking an oversubscription of 6.5 times.
• A Yield to Maturity (YTM) of 4.10% on the May 2027 tranche and 4.12% on the September 2029 tranche, representing a spread of 10 and 12 bps above US Treasuries with similar maturities.

Abu Dhabi, UAE: 23 October 2024 – The Ministry of Finance (MoF) as the issuer, 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 denominated in UAE dirhams, amounting to AED 1.1 billion. This issuance is part of the Islamic T-Sukuk issuance programme for the fourth quarter of 2024 as published on the Ministry’s website.

The auction witnessed a strong demand from eight primary dealers for both tranches maturing in May 2027 and September 2029, of the Islamic T-Sukuk, with bids received worth AED 7.2billion and an oversubscription by 6.5 times. The success is reflected in the attractive market driven prices, with a Yield to Maturity (YTM) of 4.10% for the tranche maturing in May 2027 and 4.12% for the tranche maturing on September 2029, representing a spread of 10 and12 bps above US Treasuries with similar maturities at the time of the auction.

The Islamic T-Sukuk issuance programme 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.