The United Arab Emirates, represented by the Ministry of Finance, in its capacity as the issuing authority, and in cooperation with the Central Bank of the United Arab Emirates, in its capacity as the issuing and payment agent, announced the results of the fifth auction for the issuance of Islamic Treasury Sukuks denominated in the UAE dirham, as part of the Islamic Treasury Sukuk issuance program for the year 2017. 2023, as published on the Ministry’s website.
The fifth auction of the Islamic Treasury Sukuk Program witnessed strong demand from the eight primary distributor banks, with bids worth AED 5.77 billion received, and the volume was oversubscribed by 5.2 times. Demand was strong for the two tranches, the 2-year and 3-year terms.
The success is reflected in the market-driven premium prices achieved with a spread of between 4 and 11 basis points on US Treasury bonds of similar maturities. Re-opening was practiced in this auction for 2-year and 3-year Sukuk, in order to build the volume of individual Sukuk issues. , with the aim of improving liquidity in the secondary market.
It is worth noting that Islamic treasury sukuks in the local currency work to build a return curve denominated in the UAE dirham, and provide safe investment alternatives for investors, which contributes to enhancing the competitiveness of the local debt capital market, improving the investment environment, and supporting the sustainability of economic growth.
2023-11-07 20:31:56
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