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

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

ABU DHABI: 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 fourth auction of the Treasury Bonds programme (T-Bonds), which is part of the AED 9 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 AED 8.60b, and an oversubscription by 5.7x. The success is reflected in the attractive market driven prices, which was achieved by a spread of a 8 bps over US Treasuries for two years, and a spread of 20 bps over US Treasuries for five years.

Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, stated that the new five-year T-Bonds will contribute to strengthening the local debt capital market and building the UAE dirham denominated yield curve. He added that establishing an active market for trading the T-Bonds also contributes to raising the efficiency of pricing and capital allocation and supports the development of the broader capital market.