Dubai: Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs, on Thursday rang Nasdaq Dubai’s market-opening bell to celebrate the listing and circulation of Dh1.5 billion of UAE’s first dirham-denominated treasury bonds.
The ceremony was attended by Ebrahim Alzaabi, Assistant Governor of the Central Bank of the UAE - Monetary Policy and Financial Stability; Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), and the CEOs of participating banks, along with others.
The inaugural issuance was oversubscribed 6.3 times during the first auction that successfully concluded this week (details here). The UAE plans to issue six treasury bond tranches this year with a total value of Dh9 billion, where the value of the tranches (2-year and 3-year) in the first auction amounted to Dh1.5 billion, with a fixed coupon rate of 3.01 per cent and 3.24 per cent, respectively, while other tranches will be issued with various tenures up to 5 years at later dates throughout the year.
Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs, noted that the success of the first auction of federal treasury bonds is another step in strengthening the national economy and achieving sustainable economic development, which complements the UAE government’s efforts to enhance and develop the financial and investment market. This issuance conveys the UAE’s creditworthiness as one of the most competitive and highly advanced economies in the world.
“The Federal Treasury Bond Program contributes to revitalising the local financial and banking sector and providing alternative financing opportunities for investors, in addition to reflecting the strength of economic development indicators, the stability of the financial system and the resilience of the economy. The national economy will continue its momentum and leadership during the next phase in the context of transitioning to the new economic model within the UAE 50 economic plan, in which the UAE establishes a diversified knowledge-based economy on innovation, entrepreneurship and advanced industries.”
Khaled Mohamed Balama, Governor of the Central Bank of the UAE, said: “The launch of the dirham-denominated T-Bonds reflects the UAE’s commitment to develop capital market activities and position it as a global financial hub. It also affirms the resilience and stability of the UAE’s financial system and the confidence of local and international investors in the country’s capability to develop the financial sector according to monetary policies and strategic plans.”