• AED1.1 billion Islamic Treasury Sukuks were issued in the fifth auction, as part of the Islamic Treasury Sukuks issuance program for 2023.
• Bids worth AED5.77 billion were received.
• Oversubscription by 5.2 times.
UAE: November 07, 2023 – 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 fifth auction of the Islamic Treasury Sukuks (T-Sukuks), which is part of the T-Sukuks issuance program for 2023 as published on the ministry’s website.
The fifth auction of the UAE T-Sukuks program witnessed a strong demand through the eight primary dealers, with bids received worth AED5.77 billion, and an oversubscription by 5.2 times. The strong demand was on both the 2- and 3-year tranches. The success is reflected in the attractive market driven prices, which was achieved by a spread of 4 to 11 bps over US Treasuries with similar maturities. The auction followed the practice of re-opening the 2-year and 3-year T-Sukuks, which help in building up the size of individual Sukuk issuances over time and improves liquidity in the secondary market.
The T-Sukuks program 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.
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