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The UAE sold 1.1 billion dirhams ($299.5 million ) in sukuk (Islamic bonds) under its sukuk program for Q4 2024.
The Islamic treasury bonds carried a spread of 4.30% on the three-year tranche and 4.30% on the five-year tranche, a spread of 4 basis points (bps) and 12 bps, respectively, over US Treasuries.
The issuance is part of the government's Shariah-compliant treasury bonds programme.
Islamic T-Sukuk are asset-backed Islamic Shariah-compliant financial instruments whose profit and payment at maturity mainly rely on the performance of the issuer’s assets.
The Islamic T-Sukuk issuance program aims to build the UAE dirham-denominated yield curve, provide safe investment alternatives for investors, strengthen the local debt capital market, and support sustainable economic growth. The oil-rich country is seeking to reduce dependence on energy revenues.
(Writing by Brinda Darasha; editing by Seban Scaria)
