"Finance": The Islamic Treasury Bonds auction for January achieved bids of 6.91 billion dirhams
ABU DHABI, 22nd JANUARY / WAM / The Ministry of Finance, in its capacity as the issuing authority and in cooperation with the Central Bank of the United Arab Emirates in its capacity as the issuing and payment agent, announced the results of the auction of Islamic Treasury Sukuk “T-Sukuk” denominated in UAE dirhams, with a value of 1.1 billion dirhams for the month of January, as part of The program for issuing Islamic treasury bonds for the first quarter of 2025, as published on the Ministry’s website.
The Islamic Treasury Sukuk Program auction witnessed strong demand from the eight primary distributor banks for the tranche due in May 2027 and the tranche due in September 2029, as bids worth AED 6.91 billion were received, and the volume was oversubscribed by 6.3 times.
The success of the auction is evident in the premium market-driven prices achieved with a yield-to-maturity (YTM) rate of 4.32% for the tranche maturing in May 2027 and 4.43% for the tranche maturing in September 2029, a difference of 7 and 10 basis points over US Treasury bonds of similar maturities in Release time.
It should be noted that Islamic treasury bonds in the local currency work to build the return curve denominated in the UAE dirham, and provide safe investment alternatives for investors, which contributes to enhancing the competitiveness of the local debt capital market, improving the investment environment, and supporting the sustainability of economic growth.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Related
