UAE: The UAE’s Ministry of Finance, as the issuer, collaborated with the Central Bank of the UAE (CBUAE), as the issuing and paying agent, to announce the results of the Islamic Treasury Sukuk (T-Sukuk) auction denominated in UAE dirhams at AED 1.10 billion.

The auction witnessed a strong demand from the eight primary dealers for both tranches maturing in May 2027 and September 2029, of the Islamic T-Sukuk, with bids received worth AED 6.91 billion and an oversubscription by 6.3 times.

This issuance is part of the Islamic T-Sukuk issuance programme for the first quarter of 2025, as published on the Ministry’s website.

The success is reflected in the attractive market driven prices, with a Yield to Maturity (YTM) of 4.32% for the tranche maturing in May 2027 and 4.43% for the tranche maturing on September 2029. This represented a spread of 7 and 10 bps above US Treasuries with similar maturities at the time of the auction.

The Islamic T-Sukuk issuance programme will contribute to building the UAE dirham denominated yield curve, providing safe investment alternatives for investors, strengthening the local debt capital market, developing the investment environment, as well as supporting sustainable economic growth.

 

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