The Ministry of Finance, in collaboration with the Central Bank of the UAE, successfully conducted an auction for Islamic treasury bonds, known as “T-Sukuk,” for October. The total amount raised reached 1.1 billion dirhams as part of the Islamic treasury bond program scheduled for 2025.
The Islamic treasury bond auction experienced robust demand from eight leading banks for the new two-year bonds maturing in October 2027, as well as bonds maturing in May 2030. The total bids submitted amounted to 4.57 billion dirhams, representing approximately 4.2 times the issuance size, highlighting investor confidence in the Islamic finance sector and the resilience of the national economy.
The auction success is underscored by competitive pricing determined through market mechanisms. The yield to maturity was established at 3.49% for the new two-year bonds due in October 2027 and 3.65% for the bonds maturing in May 2030. This reflects a minor differential of 7 basis points compared to the yield on similar maturity U.S. Treasury bonds at the time of issuance.
It is also worth noting that these bonds are listed under the UAE’s Islamic treasury bond program on Nasdaq Dubai, enhancing investor accessibility in the secondary market.