The UAE Ministry of Finance has successfully completed its May 2026 Treasury Bond auction, raising AED 1.1 billion amid robust investor demand that saw total bids reach AED 4.74 billion, representing an oversubscription of 4.3 times.
Conducted in collaboration with the Central Bank of the UAE as issuing and payment agent, the auction forms part of the Ministry's scheduled annual T-Bond issuance program for 2026. Two tranches were offered, maturing in September 2027 and January 2031, drawing strong participation from primary dealers across both.
Yields were competitively priced at 4.03 percent for the 2027 tranche and 4.30 percent for the 2031 tranche, with spreads of up to 14 basis points above comparable US Treasuries at the time of issuance. The bonds are listed on Nasdaq Dubai, broadening access for investors in the secondary market.
The auction marks the third successful issuance since the onset of the regional conflict. Across all three rounds, the Ministry has collectively raised AED 3.3 billion and attracted total bids exceeding AED 14.5 billion, with pricing spreads ranging between 6 and 23 basis points across tenors of 18 months to seven years.
Officials noted that the strong demand reflects continued investor confidence in the UAE's financial sector and the resilience of its broader economy.
The AED-denominated T-Bond and T-Sukuk programmes serve a dual purpose: supporting the development of the UAE's dirham yield curve while reinforcing the local debt capital market. The programmes are also aligned with the country's long-term objectives around economic sustainability, investment landscape development, and fiscal growth.
News Source: Emirates News Agency
