Abu Dhabi [UAE], August 24 (ANI/WAM): The UAE, represented by the Ministry of Finance (MoF), as the issuer, in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and paying agent, has announced the results of the third dirham-denominated Islamic Treasury Sukuk auction (T-sukuks), which is part of the T-sukuks issuance program for 2023.
The third auction of the UAE T-sukuks programme witnessed a strong demand through the eight primary dealers, with bids received worth AED6 billion, and an oversubscription by 5.5 times.
The strong demand was on both, the two- and five-year tranches. The success is reflected in the attractive market driven prices, which was achieved by a spread of zero to two basis points over US Treasuries with similar maturities.
The third auction witnessed the issuance of the first dirham-denominated Islamic Treasury Sukuks with a five-year maturity, which achieved very strong results and was oversubscribed by 6.6 times. The auction also followed the practice of re-opening the two-year T-sukuks which helps in building up the size of individual sukuk issues over time and improve liquidity in the secondary market.
The T-sukuks 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. (ANI/WAM)
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor