Dhs1.1b Islamic Treasury Sukuk issued for August 2024

The Ministry of Finance, as the issuing authority, in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and paying agent, announced the results of the Dhs1.1 billion Islamic Treasury Sukuk (T-Sukuk) auction, which is part of the Islamic T-Sukuk issuance programme for August 2024 as published on the ministry’s website.

The auction witnessed a strong demand through the eight primary dealers for the May 2026 and May 2027 tranches of the Islamic T-Sukuk, with bids received worth Dhs6.32 billion, oversubscribing the issuance by 5.7 times. The success is reflected in the attractive market driven prices, with a Yield to Maturity (YTM) of 4.04% on the May 2026 tranche and 3.88% on the May 2027 tranche, representing a 0 to 9 bps above US Treasuries with similar maturities at the time of the auction.

The Islamic T-Sukuk issuance programme will contribute to 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.

In March this year, 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 Islamic Treasury Sukuk (T-Sukuk) auction, which is part of the Islamic T-Sukuk issuance programme for Q1 2024 as published on the ministry’s website.

WAM