UAE Ministry of Finance Issues AED 1.1 Billion Islamic Treasury Sukuk for Q3 2024

UAE, 6 December, 2024 :  The UAE Ministry of Finance (MoF), in partnership with the Central Bank of the UAE (CBUAE), announced the successful issuance of Islamic Treasury Sukuk (T-Sukuk) worth AED 1.1 billion for September 2024. This issuance is part of the T-Sukuk program for Q3 2024, aimed at strengthening the local debt capital market.

The auction attracted significant demand from eight primary bank dealers, with bids totaling AED 5.07 billion, exceeding the issuance by 4.6 times. The competitive market pricing resulted in yields to maturity (YTM) of 3.67% for the May 2027 tranche and 3.65% for the newly introduced September 2029 tranche, with spreads of 13 to 15 basis points over comparable US Treasury bonds.

The local currency-denominated Sukuk supports the development of a UAE dirham yield curve, offering secure investment options and bolstering the UAE's economic sustainability and investment landscape.

Source : www.mof.gov.ae