First auction of dirham treasury bonds oversubscribed 6.3 times amid strong demand – The National

First auction of dirham treasury bonds oversubscribed 6.3 times amid strong demand – The National

The first auction of the UAE's conventional dirham-denominated treasury bonds was oversubscribed 6.3 times and achieved bids worth Dh9.4 billion ($2.6bn), the government said on Wednesday.

The Emirates last month announced the launch of a T-bonds issuance programme for 2022 with a benchmark size of Dh1.5bn, as part of plans to build a local currency bond market and diversify its financial resources.

T-bonds are fixed-rate government debt securities that pay semi-annual interest payments until maturity, which could be between 10 and 30 years, according to online financial encyclopaedia Investopedia. They are also considered relatively risk-free.