Islamic Treasury Sukuk Auction for February 2025 Attracts Bids Worth AED 7.1 Billion

• Marking an oversubscription of 6.5 times.
• A Yield to Maturity (YTM) of 4.18% on reopening of the August 2028 maturity bond and 4.21% on the reopening of the September 2029 maturity bond, representing a spread of one basis point above US Treasuries with similar maturities.

Abu Dhabi, UAE: 26 February 2025 – 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 first quarter of 2025 as published on the Ministry’s website.

The auction witnessed a strong demand from the eight primary dealers for both tranches maturing in August 2028 and September 2029, of the Islamic T-Sukuk, with bids received worth AED 7.1 billion and an oversubscription by 6.5 times. The success is reflected in the attractive market driven prices, with a Yield to Maturity (YTM) of 4.18% for the tranche maturing in August 2028 and 4.21% for the tranche maturing on September 2029, representing a spread of one basis point 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.