UAE’s first T-bond auction of 2023 gets bids worth $1.9bln
- Date: 01-Feb-2023
- Source: Zawya
- Sector:Financial Markets
- Country:UAE
UAE’s first T-bond auction of 2023 gets bids worth $1.9bln
The first auction of the UAE T-Bond programme in 2023 witnessed a strong demand through the six primary bank dealers.
The UAE’s first auction of treasury bonds for 2023 received bids worth Dh6.85 billion ($1.9bln), oversubscribing 6.2 times as investors repose trust in the Treasury Bonds programme.
The first auction of the UAE T-Bond programme in 2023 witnessed a strong demand through the six primary bank dealers. The strong demand was across both tranches with a final allocation of Dh550 million for the two-year tranche and Dh550 million for the five-year tranche, with a total of Dh1.1 billion for issuance in the first auction in 2023.
In 2022, MoF issued T-bonds aggregating to Dh9 billion across tenors of two years, three years, and five years.
“The success is reflected in the attractive market driven price, which was achieved by a spread of a 10bps for the two-year tranche, and a spread of 15bps over for the five-year tranche – both over the applicable US Treasury benchmark. This auction followed the practice of re-opening the T-Bonds which helps in building up the size of individual bond issues and improve liquidity in the secondary market,” according to a statement issued by the Ministry of Finance.
The T-Bonds