Abu Dhabi: The sixth auction of the UAE’s treasury bonds (T-bonds) programme received bids worth Dh6.72 billion, oversubscribed by 4.5 times.
Strong demand was seen across both tranches, with a final allocation of Dh750 million for the three-year tranche and Dh750 million for the five-year tranche, with a total of Dh1.5 billion issued in the auction.
The success is reflected in the attractive market driven price, which was achieved by a spread of 18 basis points over US Treasuries for three years, and a spread of 30 basis points over US Treasuries for five years.
The auction is part of UAE’s Dh9 billion T-bond issuance programme for 2022.
The T-bonds programme will contribute in building the UAE dirham denominated yield curve, strengthening the local debt capital market, developing the investment environment, providing safe investment alternatives for investors, as well as supporting sustainable economic growth.
The UAE has so far held six T-bond auctions since the beginning of the year, of Dh1.5 million each.
The first auction of the T-bonds, held in May this year, received bids worth Dh9.4 billion and was oversubscribed 6.3 times. The second auction, in June, received bids worth Dh9.7 billion and was oversubscribed by 6.5 times.
The third one, in August, received bids worth Dh7.6 billion, an oversubscription by 5.1x, while the fourth auction received bids worth Dh8.60 billion and was oversubscribed 5.7 times.
The fifth auction received bids worth Dh7.57 billion, an oversubscription by 5 times.
