UAE Ministry of Finance Image Credit: WAM

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.