UAE’s seven-year treasury sukuk oversubscribed
The UAE’s first seven-year dirham Islamic government bonds attracted orders worth six times more than the amount offered, the finance ministry has said.
The AED550 million ($150 million) treasury sukuk tranche, also known as T-sukuk, had strong demand, with the order book reaching nearly AED3.1 billion, the ministry said in a statement.
Overall demand for two tranches, which mature in May 2030 and February 2033, reached AED5.9 billion. This represents an oversubscription ratio of 5.3 times.
The yield-to-maturity was 3.53 percent for May 2030 and 3.779 percent for February 2033, priced below par to comparable US Treasuries.
The sukuk, or sharia-compliant bonds, are listed under the UAE treasury Islamic sukuk programme with Nasdaq Dubai, which aids investor access to the secondary market.
Further reading:
- UAE opens up treasury sukuk to individual investors
- UAE to sell first dirham T-sukuk worth nearly $300m
- UAE’s first dirham T-sukuk gets bids worth $2.3bn
The government says the Islamic T-sukuk programme plays a vital role in developing the UAE’s dirham-denominated yield curve. It also supports the country’s long-term economic sustainability and growth objectives.
In October the finance ministry said retail investors in the UAE would soon be able to invest in T-sukuk that were previously available only to institutions. The minimum investment was set at AED4,000.
Finance minister Sheikh Maktoum bin Mohammed Al Maktoum said the initiative aimed to make investment in government bonds an “accessible, comprehensive digital experience” for citizens and residents.
You May Also Like
‘Failed Experiment’: Are Bitcoin Treasury Companies Dumping BTC? Bitdeer Holdings Hit Zero
How to Spot a Legitimate Online Casino – Essential Checks
