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The UAE has issued AED1.1 billion ($300 million) in its first T-Bonds auction in 2023, and demand is huge. Demand was very strong for both tranches, with a final allocation of AED 550 million for the 2-year period and AED 550 million for the 5-year period.
The auction saw strong demand from six major bank dealers, receiving bids worth AED 6.85 billion, 6.2 times oversubscribed.
The bonds were issued by the Ministry of Finance (MoF) as the issuer in cooperation with the Central Bank of the United Arab Emirates (CBUAE) as the issuing and disbursement agent
AED9 billion in national debt issued in 2022
In 2022, the MoF issued 2-year, 3-year and 5-year treasury bonds totaling AED9 billion.
This year’s success has been reflected in attractive market-driven pricing, achieved through spreads of 10 basis points for 2-year bonds and 15 basis points for 5-year bonds – both for the US Treasury benchmark.
This auction follows the practice of reopening national bonds, which will help expand the scale of a single bond issue and improve the liquidity of the secondary market.
The treasury bond program helps build a UAE dirham-denominated yield curve, strengthens local debt capital markets, develops the investment climate, provides investors with safe investment options, and supports sustainable economic growth. — trade arab news agency
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