The Ministry of Finance, in collaboration with the Central Bank of the UAE as the issuing and payment agent, has successfully conducted an auction for Islamic Treasury Sukuk denominated in dirhams for June, totaling 1.1 billion dirhams as part of the Islamic Treasury Sukuk program for 2025, as reported on the ministry’s website.
The auction attracted significant demand from eight banks, which are the primary distributors for the two maturities due in May 2027 and August 2028. The total value of bids received amounted to 6.21 billion dirhams, indicating an oversubscription by a factor of 5.6 times.
This successful auction is highlighted by competitive pricing based on market dynamics, achieving a yield to maturity (YTM) of 3.88% for the maturity due in May 2027 and 3.83% for the maturity due in August 2028. These rates reflect a difference of two basis points compared to similar maturity U.S. Treasury bonds at the time of issuance.