UAE continues to get significant investor interest for its treasury bonds program, which was launched in 2022. Image Credit: WAM

Dubai: Bids of Dh5.51 billion were raised for the second auction of the UAE’s Treasury bonds for the year. This meant an over-subscription by 5x.

The two tranches meant a final allocation of Dh550 million for the 2-year tenor and Dh550 million for the 3-year, with a total of Dh1.1 billion issued in the auction. “The success is reflected in the attractive market driven price at the time of the auction,” the UAE MoF said in a statement. “The T-Bonds achieved a pricing of 5-20 basis points over the applicable US Treasury benchmark with similar maturity.”

In 2022, the Ministry of Finance issued T-Bonds aggregated Dh9 billion with tenors of 2-, 3- and 5- years.

The latest auction followed the practice of re-opening the T-Bonds, which ‘helps in building up the size of individual bond issues over time and improves liquidity in the secondary market’.

The T-Bonds program contributes to building the UAE dirham-denominated yield curve, plus adding strength to the local debt capital market.