UAE’s Islamic Treasury Sukuk receives bids worth Dh5.77b

Abu Dhabi: The UAE's fifth auction of Islamic Treasury sukuk (T-sukuk) received bids worth Dh5.77 billion, an oversubscription of 5.2 times, the Ministry of Finance said on Tuesday. Strong demand was on both the 2- and 3-year tranches.

The success is reflected in the attractive market driven prices, which was achieved by a spread of 4 to 11 bps over US Treasuries with similar maturities, according to a statement.

The auction followed the practice of reopening the 2-year and 3-year T-sukuks, which help in building up the size of individual sukuk issuances over time and improves liquidity in the secondary market.

The T-sukuks programme will contribute in 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.