The fourth auction of the UAE’s treasury bonds programme received bids worth Dh8.60 billion and was oversubscribed 5.7 times, it was announced on Monday.
The fourth auction – of Dh1.5 billion worth of T-bonds -- is part of the UAE’s Dh9 billion bond issuance programme for 2022.
The two-year tranche achieved a demand of Dh3.95 billion, while the five-year tranche saw a demand of Dh4.65 billion.
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, stated that the new five-year T-Bonds will contribute to strengthening the local debt capital market and building the UAE dirham-denominated yield curve. He added that establishing an active market for trading the T-Bonds also contributes to raising the efficiency of pricing and capital allocation and supports the development of the broader capital market. It also provides safer alternatives for foreign investors to invest in local currency.
“The T-Bonds support the country’s financial and economic policies aimed at achieving comprehensive and sustainable economic development. They also help boost the financial market and credit structure, and create a multi-investment environment that contributes to making the UAE an ideal investment destination, particularly as the country enjoys a strong credit rating by international credit agencies, which has cemented its position as one of the most internationally competitive economies,” the minister said.
In May this year, the UAE issued the dirham denominated T-Bonds in two- and three-year tenures. Six agent banks have been appointed by the Ministry of Finance as primary dealers for participants: Abu Dhabi Commercial Bank, Emirates NBD, First Abu Dhabi Bank, HSBC, Mashreq Bank, and Standard Chartered.