First auction of Treasury Bonds for the year 2023 continues to achieve exceptional results

First auction of Treasury Bonds for the year 2023 continues to achieve exceptional results

- Bids worth AED 6.85 billion were received

- Oversubscription by 6.2x

UNITED ARAB EMIRATES: The United Arab Emirates, represented by the Ministry of Finance (MoF) as the issuer, in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and paying agent, has announced the results of the first auction in the year 2023 of the Treasury Bonds programme (T-Bonds), which is part of the T-Bond issuance programme for this year and as published in the T-Bonds calendar earlier this year. In 2022, MoF issued T-bonds aggregating to AED 9 billion across tenors of 2 years, 3 years, and 5 years.

The first auction of the UAE T-Bond programme in 2023 witnessed a strong demand through the six primary bank dealers, with bids received worth AED 6.85 billion, and an oversubscription by 6.2x. The strong demand was across both tranches with a final allocation of AED 550 million for the 2-year tranche and AED 550 million for the 5-year tranche, with a total of AED 1.1 billion for issuance in the first auction in 2023. The success is reflected in the attractive market driven price, which was achieved by a spread of a 10 bps for the 2-year tranche, and