Third auction of UAE Treasury Bonds continues to achieve exceptional results

Third auction of UAE Treasury Bonds continues to achieve exceptional results

ABU DHABI, 1st August, 2022 (WAM) -- The United Arab Emirates, 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, has announced the results of the third auction of the Treasury Bonds programme (T-Bonds), which is part of the AED9 billion T-Bond issuance programme for 2022 as published in the T-Bonds calendar earlier this year.

The third auction of the UAE T-Bond programme witnessed a strong demand through the six primary bank dealers, with bids received worth AED7.6 billion, and an oversubscription by 5.1x. The strong demand was across both tranches with a final allocation of AED750 million for the 2 year tranche and AED750 million for the 3 year tranche, with a total of AED1.5 billion issued in the third auction.

The success is reflected in the attractive market driven prices, which was achieved by a spread of a 16 bps over US Treasuries for two years, and a spread of 15 bps over US Treasuries for 3 years.

The third auction followed the practice of re-opening the T-Bonds which helps in building up the size of individual bond issues over time and improve liquidity in the secondary market.

The T-Bonds programme will contribute in building the UAE dirham denominated yield curve, providing safe investment alternatives for investors, strengthening the local debt capital market, developing the investment environment, as well as supporting sustainable economic growth.