Islamic Treasury Sukuk Auction: UAE Achieves Outstanding Results

UAE, 05 April, 2024 : The Ministry of Finance (MoF) of the United Arab Emirates, in collaboration with the Central Bank of the UAE (CBUAE), has disclosed the outcomes of the Islamic Treasury Sukuk (T-Sukuk) auction, as part of the Q1 2024 issuance programme outlined on the ministry’s website.

The auction for the 3-year and 5-year tranches of the Islamic T-Sukuk garnered significant interest from eight primary dealers, with bids totaling AED7.83 billion, showcasing a remarkable oversubscription rate of 7.1 times. This strong demand underscores market confidence, resulting in competitive prices that offered a spread of 4 bps over US Treasuries with similar maturities.

The success of the Islamic T-Sukuk issuance programme contributes to the establishment of the UAE dirham denominated yield curve, furnishing secure investment avenues for investors. Moreover, it reinforces the local debt capital market, fosters a conducive investment environment, and bolsters sustainable economic growth.

Source :  www.mof.gov.ae