The April Islamic Treasury Sukuk auction attracts subscriptions worth 5.20 billion dirhams
ABU DHABI, 23 APRIL/WAM/ The Ministry of Finance, in its capacity as the issuing authority and in cooperation with the Central Bank of the United Arab Emirates as the issuing and payment agent, announced the success of the auction of Islamic treasury bonds denominated in the UAE dirham for the month of April 2026, with a total issuance of 1.1 billion dirhams.
This issuance comes within the annual Islamic Treasury Sukuk program for the year 2026, as published on the Ministry’s official website.
The auction witnessed strong participation from the eight initial dealers across the two tranches of the issue due in October 2027, in addition to the additional offering of the 7-year issue due in February 2033.
The total subscription requests amounted to 5.20 billion dirhams, representing a coverage rate of 4.7 times, which reflects investors’ continued confidence in the creditworthiness of the UAE and the strength of its economy.
The additional offering of 7-year Treasury securities also attracted strong demand, achieving a coverage ratio of 5 times, and was priced just 10 basis points above US Treasury yields.
This comes as an extension of the success achieved by the first issuance of this term in February 2026, which witnessed coverage amounting to 6 times and was priced lower than similar US Treasury bond yields. This exceptional demand for seven-year terms confirms the ministry’s success in developing an integrated sovereign yield curve in the UAE dirham.
The auction results showed competitive pricing that reflects market mechanisms, as the yield to maturity (YTM) reached 3.92% for the October 2027 tranche, and 4.13% for the February 2033 tranche.
The short-term tranche was priced at a spread of 23 basis points, while the seven-year tranche was priced at a narrow spread of 10 basis points above comparable US Treasury bond yields at the time of issuance.
These sukuks were also listed within the UAE Islamic Treasury Sukuk Program on Nasdaq Dubai, which enhances investors’ access to them in the secondary market.
The Islamic Treasury Sukuk Program plays a pivotal role in supporting the development of the UAE dirham-denominated yield curve, by providing safe investment tools to a wide segment of investors. It also contributes to strengthening the local debt market, developing the investment system, and supporting the country’s long-term goals in achieving economic sustainability and growth.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Related
