[ad_1]
The UAE’s fourth government bond auction (T-Bonds), which is part of the AED9 billion ($2.45 billion) government bond issuance plan in 2022, has achieved extraordinary bidding results.
The auction, which saw the first issuance of five-year government bonds, saw strong demand from six major bank dealers, receiving tenders worth AED8.6 billion, 5.7 times oversubscribed, with a planned AED1.5 billion bond.
The UAE, represented by the Ministry of Finance (MoF), is the issuer, working with the Central Bank of the UAE (CBUAE) as the issuing and payment agent.
Success is reflected in attractive market-driven prices, with a two-year Treasury spread of 8 basis points and a five-year Treasury spread of 20 basis points.
Finance Minister Mohammad bin Hadi Al Husseini said the new five-year government bonds will help strengthen local debt capital markets and build a yield curve denominated in the UAE dirham.
He added that establishing an active treasury bond trading market would also help improve the efficiency of pricing and capital allocation, supporting the development of broader capital markets. It also provides a safer option for foreign investors to invest in their local currency.
“The national debt supports the country’s financial and economic policies aimed at achieving comprehensive and sustainable economic development. They also help to promote financial markets and credit structures, create a diverse investment environment, and help make the UAE an ideal investment destination, especially This is because the country enjoys a strong credit rating from international credit institutions, which cements its position as one of the most internationally competitive economies as a country,” he said.
Khaled Mohamed Balama, Governor of the UAE Central Bank, stressed: “The issuance of 5-year sovereign bonds in national currency is an advanced stage in the UAE’s plan and direction to diversify capital market activities, establish a yield curve dominated by the UAE dirham, and realize the The objective of the Ram Monetary Framework. It also reflects the soundness and stability of the country’s financial system and the confidence of local and international investors, thereby enhancing the UAE’s position as a global financial centre.”
He added: “We are confident in the infrastructure we have built, which will enhance the UAE’s ability to develop the financial sector in line with monetary policy and strategic plans. We have achieved positive results from our cooperation with the Ministry of Finance in developing financial markets and improving investment in the country. feel happy– arab trade news agency
[ad_2]
Source link
