UAE’s 5-year tranche Treasury Bonds achieves exceptional bidding results

UAE’s 5-year tranche Treasury Bonds achieves exceptional bidding results

The fourth auction, which witnessed the first issuance of five-year T-Bonds saw a strong demand through the six primary bank dealers, with bids received worth Dh8.6b, and an oversubscription by 5.7x

The new five-year T-Bonds will contribute to strengthening the local debt capital market and building the UAE dirham denominated yield curve. — File photo

By Staff Report Published: Mon 12 Sep 2022, 7:54 PM

The UAE, 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 fourth auction of the Treasury Bonds programme (T-Bonds), which is part of the Dh9 billion T-Bond issuance programme for 2022 as published in the T-Bonds calendar earlier this year.

The fourth auction, which witnessed the first issuance of five-year T-Bonds saw a strong demand through the six primary bank dealers, with bids received worth Dh8.6b, and an oversubscription by 5.7x. The success is reflected in the attractive market driven prices, which was achieved by a spread of a 8bps over US Treasuries for two years, and a spread of 20bps over US Treasuries for five years.

Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs,