UAE collaborates with Bloomberg, Euroclear Bank to offer solution for Islamic bonds
- Date: 14-May-2023
- Source: Mubasher
- Sector:Financial Markets
- Country:UAE
UAE collaborates with Bloomberg, Euroclear Bank to offer solution for Islamic bonds
UAE – Mubasher: The UAE Ministry of Finance teamed up with Bloomberg and Euroclear Bank to launch a new auction solution which will enable the ministry, in collaboration with the Central Bank of the UAE (CBUAE), to issue dirham-denominated Islamic Treasury Sukuk (T-Sukuk).
The Sharia-compliant financial certificates will be auctioned through the primary and secondary market solutions of Bloomberg, while they will be settled through a local platform, compliant with international standards, built and operated by Euroclear Bank.
The ministry and the central bank will utilise Bloomberg AIM, a leading investment and order management solution, to streamline processes for market operations, such as custom swift messages to Euroclear Bank for settlement, according to a press release.
Meanwhile, the issuance will be executed on the Bloomberg Auction System to connect to the primary dealers that are selected by the UAE ministry. Furthermore, trading of the T-Sukuk notes will also be facilitated over the Bloomberg E-Bond system, which will allow broader access to the secondary market for eligible investors.
Minister of State for Financial Affairs, Mohamed bin Hadi Al Hussaini, said: “The Ministry of Finance cooperates with all its partners, foremostly the Central Bank of the UAE, to attract investments and deploy them in Islamic economy