UAE Ministry of Finance Announces AED 1.1 Billion Islamic T-Sukuk Auction Results

The Ministry of Finance (MoF), in collaboration with the Central Bank of the UAE (CBUAE), has successfully completed an Islamic Treasury Sukuk (T-Sukuk) auction totaling AED 1.1 billion.

This issuance is part of the UAE’s ongoing Islamic T-Sukuk programme for the fourth quarter of 2024, as outlined on the Ministry’s website.

The auction saw significant demand from eight primary dealers, with bids reaching AED 5.43 billion, marking an oversubscription rate of 4.9 times. The two tranches issued included maturities for May 2027 and September 2029, reflecting a healthy market response.

The yields for the T-Sukuk were set at 4.30% for the May 2027 tranche and 4.38% for the September 2029 tranche. These yields were 4 and 12 basis points above US Treasuries of comparable maturities at the time of the auction, indicating the attractive pricing and strong investor confidence.

This successful issuance is part of a broader strategy to build a UAE dirham-denominated yield curve, providing safe investment alternatives for investors. It is also expected to strengthen the UAE’s local debt capital market, contribute to sustainable economic growth, and enhance the overall investment environment.

The Islamic T-Sukuk programme remains a key instrument in supporting the UAE’s economic stability and offering a reliable avenue for both local and international investors.

News Source: Emirates News Agency