KHALEEJ TIMES, Wednesday, Feb 01, 2023 | Rajab 10, 1444
UAE’s first T-bond auction of 2023 gets bids worth Dh6.85b
The UAE’s first auction of treasury bonds for 2023 received bids worth
Dh6.85 billion, oversubscribing 6.2 times as investors repose trust in the
Treasury Bonds programme.
The first auction of the UAE T-Bond programme in 2023 witnessed a strong demand
through the six primary bank dealers. The strong demand was across both tranches
with a final allocation of Dh550 million for the two-year tranche and Dh550
million for the five-year tranche, with a total of Dh1.1 billion for issuance in
the first auction in 2023.
In 2022, MoF issued T-bonds aggregating to Dh9 billion across tenors of two
years, three years, and five years.
“The success is reflected in the attractive market driven price, which was
achieved by a spread of a 10bps for the two-year tranche, and a spread of 15bps
over for the five-year tranche – both over the applicable US Treasury benchmark.
This auction followed the practice of re-opening the T-Bonds which helps in
building up the size of individual bond issues and improve liquidity in the
secondary market,” according to a statement issued by the Ministry of Finance.
The T-Bonds programme contributes to building the UAE-dirham-denominated yield
curve, strengthening the local debt capital market, developing the investment
environment, providing safe investment alternatives for investors, as well as
supporting sustainable economic growth.