The UAE, represented by the Ministry of Finance in its capacity as the issuing authority, and in cooperation with the Emirates Central Bank in its capacity as the issuance and payment agent, announced the results of the third auction for the issuance of Islamic Treasury Sukuk (T-) denominated in UAE dirhams, as part of the Islamic Treasury Sukuk Issuance Program for the year 2023 as published on Ministry website.
A statement stated that the third auction of the Islamic Treasury Sukuk program witnessed strong demand from the eight main distributing banks, as bids worth 6.0 billion dirhams were received, and the volume of subscription was exceeded by 5.5 times.
According to the statement, the demand was strong for the “two-year” and “5-year” tranches, and the success was embodied in achieving premium prices, as there was a difference between zero to 2 basis points on US Treasury bonds for similar terms.
The third auction also witnessed the issuance of the first tranche of Islamic sukuk “for a period of 5 years”, which achieved great success, as the submitted bids exceeded the subscription volume by 6.6 times. The “re-opening” process was practiced in this auction for “two-year” sukuk, in order to build up the volume of individual sukuk issuances, with the aim of improving liquidity in the secondary market.
It is noteworthy that the Islamic treasury sukuk in the local currency works to build the yield curve denominated in the UAE dirham, and provides safe investment alternatives for investors, thus contributing to enhancing the competitiveness of the local debt capital market, improving the investment environment, and supporting the sustainability of economic growth.
2023-08-23 22:05:59
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