The October Islamic Treasury Sukuk auction achieved bids of 4.57 billion dirhams
ABU DHABI, 30th October / 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 success of the auction of Islamic Treasury Sukuks, denominated in the Emirati dirham, for the month of October, with a total value of 1.1 billion dirhams, as part of the Islamic Treasury Sukuk Program for the year 2025.
The Islamic Treasury Sukuk auction witnessed strong demand from the eight banks, the primary distributors, for the new two-year Sukuk tranche due in October 2027 and the tranche due in May 2030, with the total value of bids submitted reaching 4.57 billion dirhams, equivalent to about 4.2 times the size of the issue. This high demand reflects investors’ confidence in the strength of the Islamic finance sector and the strength of the national economy.
The success of the auction is highlighted by the competitive prices based on market mechanisms, which were achieved with a rate of return to maturity of 3.49% for the new two-year tranche due in October 2027 and 3.65% for the tranche due in May 2030, a difference of a small difference of 7 basis points over the yields of US Treasury bonds for similar maturities at the time of issuance.
It is also worth noting that these sukuks are listed within the UAE Islamic Treasury Sukuk Program on Nasdaq Dubai, which enhances investors’ ease of access to them in the secondary market.
It is noteworthy 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.
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