UAE issues Dh1.1 billion Islamic Treasury Sukuk for Q2-2024
Bids worth Dh9.81 billion were received, oversubscribed 8.9 times
The UAE's Ministry of Finance, in collaboration with the Central Bank of the UAE, has announced the results of the Islamic Treasury Sukuk (T-Sukuk) auction for Q2-2024.
The auction saw strong demand from eight primary dealers for the 3-year and 5-year tranches of the Islamic T-Sukuk, with bids worth Dh9.81 billion and oversubscription of 8.9 times.
The auction resulted in attractive market-driven prices, with a Yield to Maturity (YTM) of 4.57 per cent on the 3-Year tranche and 4.44 per cent on the 5-Year tranche. This represents a 5bps price tightening below US Treasuries with similar maturities at the time of the auction.
The Islamic T-Sukuk issuance program aims to build the UAE dirham-denominated yield curve, provide safe investment alternatives for investors, strengthen the local debt capital market, and support sustainable economic growth.