The Ministry of Finance (MoF), in cooperation with the Central Bank of the UAE, has announced the outcome of the Islamic Treasury sukuk auction. This auction is part of the Islamic T-Sukuk issuance program for Q2 2024, as posted on the ministry's website.
The auction received significant interest from eight primary dealers for the three-year and five-year tranches of the Islamic T-Sukuk. Bids totaling Dh9.81 billion were received, indicating an oversubscription rate of 8.9 times. The success of the auction is evident from the favorable market-driven prices, with a yield to maturity (YTM) of 4.57% for the three-year tranche and 4.44% for the five-year tranche. These rates are five basis points lower than comparable US Treasuries at the time of the auction.
A statement released by the ministry emphasized that the Islamic T-Sukuk issuance program will contribute to the establishment of an UAE dirham yield curve. It aims to provide secure investment options, enhance the local debt capital market, foster investment environment development, and support sustainable economic growth.
