UAE’s Islamic T-Sukuk Auction Oversubscribed

The UAE has attracted AED 6.76 billion (US$1.8 billion) in bids for its bonds under the Q3 2024 sukuk programme.

The Islamic Treasury Sukuk (T-Sukuk) offered a spread of 4.77% on the three-year tranche and 4.43% on the five-year tranche, according to the Ministry of Finance (MoF).

The auction was oversubscribed 6.1 times, with strong demand coming from eight banks, according to the ministry.

The spreads on the Islamic bonds represent a 1 to 3 bps price tightening below US Treasuries that have similar maturities.

The bonds are part of the UAE’s Islamic T-Sukuk issuance programme for Q3 2024, which is expected to contribute to building the UAE dirham denominated yield curve and boost the local debt capital market.