The UAE Ministry of Finance (MoF), in collaboration with the Central Bank of the UAE (CBUAE), has announced the results of its latest Islamic Treasury Sukuk (T-Sukuk) auction.
The issuance, amounting to AED1.1 billion, is part of the Ministry's Islamic T-Sukuk programme for the first quarter of 2025.
The auction saw strong interest from eight primary dealers, with bids totaling AED7.1 billion—oversubscribed by 6.5 times. The T-Sukuk offered two tranches, maturing in August 2028 and September 2029, reflecting a robust demand for UAE dirham-denominated assets.
The auction's success is evident in the market-driven prices, with the August 2028 tranche yielding 4.18%, and the September 2029 tranche yielding 4.21%. These rates represent a narrow spread of just one basis point above comparable US Treasuries at the time of the auction.
This Islamic T-Sukuk issuance is part of broader efforts to strengthen the UAE’s local debt capital market, expand the dirham-denominated yield curve, and offer safe investment options for investors. The programme supports the UAE's commitment to fostering sustainable economic growth and enhancing the investment environment.
The Ministry's continued issuance of Islamic T-Sukuk underscores the UAE’s dedication to diversifying its financial instruments, providing opportunities for both local and international investors.
News Source: Emirates News Agency
