Abu Dhabi: The UAE’s first auction of treasury bonds for 2023 was oversubscribed 6.2 times and received bids worth Dh6.85 billion.
Of the Dh1.1 billion issuance, Dh550 million was allocated for the two-year tranche, and an identical amount for a five-year tranche.
In 2022, the government issued T-bonds worth Dh9 billion across tenors of two, three and five years.
The success is reflected in the attractive market driven price, which was achieved by a spread of a 10 bps for the two-year tranche, and a spread of 15 bps over for the five-year tranche – both over the applicable US Treasury benchmark.
The second auction of Dh1.1 billion, scheduled for March 13, will see Dh550 million worth of bonds each issued in two-year and three-year tranches.
Strong 2022 performance
Last year, the first auction received bids worth Dh9.4 billion and was oversubscribed 6.3 times. The second auction received bids worth Dh9.7 billion and was oversubscribed by 6.5 times. The third one saw 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 one received bids worth Dh7.57 billion, an oversubscription by five times, while the sixth auction received bids worth Dh6.72 billion, oversubscribed by 4.5 times.
With inputs from WAM
