UAE’s debut Islamic treasury bonds attracts bids worth Dhs8.3bn

UAE’s debut Islamic treasury bonds attracts bids worth Dhs8.3bn

The UAE’s debut auction of dirham-denominated Islamic treasury sukuk (T-Sukuk) was oversubscribed by 7.6 times and attracted bids totalling $2.26bn (Dhs8.3bn). The strong demand was across both tranches, with a final allocation of Dhs550m for the two-year tranche and Dhs550m for the three-year tranche with a total issuance of . Sheikh Maktoum bin Mohammed, First Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance said the successful launch of the T-Sukuk auction reflects the UAE’s prudent strategic investment policies and objectives, as the country continues to solidify its position as a global investment destination. The T-Sukuk auction will be followed by a listing on Nasdaq Dubai to promote secondary market trading along with primary dealers. The programme will provide safe investment alternatives, further contributing to the development of the UAE’s investment environment. “T-Sukuk issuances will offer high-quality Islamic assets at competitive prices due to the increase in the investor base, which reflects positively on the country’s economy and investment environment,” said Sheikh Maktoum bin Mohammed. The lowest bid for the two-year tenor was at 3.90 per cent, with the weighted average bids at 3.96 per cent and the final uniform coupon rate fixed at 3.97 per cent.