Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs, rang Nasdaq Dubai’s market-opening bell to celebrate the listing and circulation of 1.5 billion Emirati dirhams, as the first Dirham-denominated treasury bonds (T-bonds) issued by the UAE Federal Government acting through the Ministry of Finance.
The issuance is part of an ambitious strategy that includes a series of treasury bond issuances to develop the fixed income market in the UAE by providing investors with investment opportunities in sovereign issuances and a proper gauge of the yield curve of investments in debt instruments.
The inaugural issuance of the local currency treasury bonds program witnessed a strong appetite from investors in the region and globally being 6.3 times oversubscribed during the first auction that successfully concluded this week. The Ministry plans to issue 6 treasury bond tranches this year with a total value of 9 billion dirhams, where the value of the tranches (2 years and 3 years) in the first auction amounted to 1.5 billion dirhams, with a fixed coupon rate of 3.01 and 3.24 percent, respectively, while other tranches will be issued with various tenures up to 5 years at later dates throughout the year.
Al Hussaini 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.
Moreover, he noted that the demand for treasury bonds confirms the position and confidence that the UAE enjoys as an ideal investment destination for investors and entrepreneurs in the region, given its comprehensive infrastructure and logistics.
