Second T-Bond auction in 2023 draws AED5.51 bn in bids

AED 1.1 bn T-Bonds issued in the auction
Second T-Bond auction in 2023 draws AED5.51 bn in bids
Second auction of Treasury Bonds in 2023 continues to achieve exceptional results

The second auction of the UAE Treasury Bond (T-Bond) program in 2023 witnessed a strong demand through the six primary dealers, with bids, received worth 5.51 billion dirhams, and an oversubscription of 5.0x. The strong demand was across both tranches with a final allocation of 550 million dirhams for the 2-year tranche and 550 million dirhams for the 3-year tranche, with a total of 1.1 billion dirhams issued in the auction.

The success is reflected in the attractive market-driven price at the time of the auction; the T-Bonds achieved pricing of 5-20bps over the applicable US Treasury benchmark with a similar maturity. This 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.

Read more: UAE’s first 2023 T-bonds auction sees issuance of AED1.1 worth

The results were announced by the UAE, represented by the Ministry of Finance (MoF) as the issuer, in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and paying agent.

The auction is part of the T-Bond issuance program for 2023 and is published in the T-Bonds calendar earlier this year. In 2022, MoF issued T-bonds aggregating to 9 billion dirhams across tenors of 2 years, 3 years, and 5 years.

The T-Bonds programme will contribute to 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.

For more on T-Bonds, click here.

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