The latest auction for UAE’s AED1.1 billion Islamic Treasury Sukuk (T-Sukuk) witnessed a massive response, receiving bids to the tune of AED 6.32 billion, marking an over subscription of 5.7 times.
The auction witnessed a strong demand through the eight primary dealers for the May 2026 and May 2027 tranches of the Islamic T-Sukuk, the UAE Finance Ministry said.
The auction was conducted in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and paying agent.
The AED1.1 billion issue is part of the UAE’s Islamic T-Sukuk issuance programme for August 2024.
The success of the latest T-Sukuk auction is attributed to its attractive market driven prices, with a Yield to Maturity (YTM) of 4.04 percent on the May 2026 tranche and 3.88 percent on the May 2027 tranche.
The pricings are 0 to 9 bps (basis points) above US Treasuries with similar maturities at the time of the auction.
The Islamic T-Sukuk issuance programme is aimed at contributing to building the UAE dirham denominated yield curve and providing safe investment alternatives for investors, besides strengthening the local debt capital market.
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