The UAE Ministry of Finance, in partnership with the Central Bank of the UAE (CBUAE), has released the results of the AED1.1 billion ($299.49 million) Islamic Treasury Sukuk (T-Sukuk) auction. This auction is part of the Islamic T-Sukuk issuance program for August 2024, as detailed on the ministry’s website.
Read more: Sukuk issuance continues steady growth, reaching towards $1 trillion in the GCC: Report
The auction attracted significant interest from eight primary dealers for the May 2026 and May 2027 tranches of the Islamic T-Sukuk, with total bids reaching AED6.32 billion ($1.72 billion)—oversubscribing the issuance by 5.7 times. This strong performance is evident in the appealing market-driven prices, with a Yield to Maturity (YTM) of 4.04 percent for the May 2026 tranche and 3.88 percent for the May 2027 tranche, which are positioned at 0 to 9 basis points above comparable U.S. Treasuries at the time of the auction.
Exceptional results were achieved in the Islamic Treasury Sukuk auction, with bids exceeding AED 6 billion and a significant increase in subscription volume. Learn about the results. ⬆️#MoF pic.twitter.com/NYuVUdeAJI
— وزارة المالية | الإمارات (@MOFUAE) August 30, 2024
The UAE Islamic T-Sukuk issuance program aims to enhance the UAE dirham-denominated yield curve, offering secure investment options for investors, bolstering the local debt capital market, improving the investment landscape, and supporting sustainable economic development.
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