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UAE secures AED 7.57bn from 5th T-bonds auction

UAE secures AED 7.57bn from 5th T-bonds auction
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UAE – Mubasher: The fifth auction of the UAE’s treasury bonds (T-bond) programme received bids worth AED 7.57 billion and was oversubscribed five times.

The fifth issue, which took place in late October, comes within the framework of the AED 9 billion T-bonds issuance programme for 2022.

The UAE Ministry of Finance acted as the issuer, while the Central Bank of the UAE (CBUAE) was the issuing and paying agent for the tranche, according to a press release.

The two-year tranche attracted a final allocation worth AED 750 million, the same allotment registered for the three-year offering, with a total of AED 1.50 billion issued in the third auction. This led to an attractive market-driven price, which was achieved by a spread of 17 basis points (bps) and 8 bps over US treasuries for two years and three years, respectively.

Meanwhile, the fifth auction aligns with the practice of re-opening the T-bonds which strengthens the size of individual bond issues and bolsters liquidity in the secondary market.

The T-bonds programme aims to establish the UAE dirham-denominated yield curve, boost the local debt capital market, enhance the investment environment, secure safe alternatives for investors, as well as backing sustainable economic growth.