$2Bln in Auction of UAE Treasury Bonds

$2Bln in Auction of UAE Treasury Bonds

The United Arab Emirates, represented by the Ministry of Finance as the issuer, in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and paying agent, announced Monday the results of the third auction of the Treasury Bonds program (T-Bonds).

This program is part of the AED9 billion ($408.2 million) T-Bond issuance program for 2022 as published in the T-Bonds calendar earlier this year.

According to the Finance Ministry, the auction witnessed a strong demand through the six primary bank dealers, with bids received worth AED7.6 billion ($2 billion), and an oversubscription by 5.1 folds.

The strong demand was on both tranches with a final allocation of AED750 million ($204.1 million) for the two-year tranche and AED750 million ($204.1 million) for the three-year tranche, with a total of AED1.5 billion ($408.2 million) issued in the third auction.

The Ministry said this success is reflected in the attractive market driven prices, which was achieved by a spread of a 16 basic points (bps) over US Treasuries for two years, and a spread of 15 bps over US Treasuries for three years.

The third auction followed the practice of re-opening the T-Bonds, which helps in building up the size of individual bond issues over