Fifth auction of Islamic Treasury Sukuks registers 5.2 times oversubscription
[ad_1]
The United Arab Emirates, represented by the Ministry of Finance (MoF) as issuer, in collaboration with the Central Bank of the United Arab Emirates (CBUAE), as issuing and paying agent, has announced the results of the fifth auction of Islamic Treasury Sukuks (T-Sukuks), which is part of the T-Sukuk issuance program for 2023, published on the ministry’s website .
The fifth auction of the UAE T-Sukuks program witnessed strong demand across the top eight distributors, with bids received worth AED 5.77 billion and 5.2 times oversubscribed. The strong demand occurred in the 2 and 3 year sections. The success is reflected in attractive market-driven pricing, which was achieved through a spread of 4 to 11 basis points over US Treasuries with similar maturities. The auction followed the practice of reopening 2- and 3-year T-Sukuks, which help increase the size of individual Sukuk issuances over time and improve liquidity in the secondary market.
He T-Sukuks The program 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 and supporting sustainable economic growth.
News source: Emirates News Agency
[ad_2]
