UAE’s five-year tranche treasury bonds receive bids worth Dhs8.6bn in fourth auction

UAE’s five-year tranche treasury bonds receive bids worth Dhs8.6bn in fourth auction

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, announced the results of the fourth auction of the Treasury Bonds programme (T-Bonds), which is part of the Dhs9bn T-Bond issuance programme for 2022. The fourth auction, which saw the first issuance of five-year T-Bonds witnessed a strong demand through the six primary bank dealers, with bids received worth Dhs8.6bn, and oversubscription of 5.7 times, according to the state news agency, . The performance is reflected in the attractive market-driven prices, which was achieved by a spread of eight basis points (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. It also provides safer alternatives for foreign investors to