UAE announces second auction of $408m treasury bonds
ABU DHABI, June 18, 2022
In its capacity as the issuer, the UAE Ministry of Finance (MoF) has announced that the second auction of federal treasury bonds (T-Bonds) will be held on June 20, with an auction size of AED1.5 billion ($408 million) distributed over two tranches - a two-year and a three-year one valued at AED750 million ($204 million) each.
The re-opening of bonds will be exercised in this auction to increase the volume of individual bonds issued with the aim of improving liquidity in the secondary market, said a statement from the ministry.
The first auction of the AED denominated T-Bonds program witnessed a wide turnout from local and international investors, with a total issuance of AED 1.5 billion divided into two tranches - of two and three years – and a uniform coupon rate fixed at 3.01% and 3.24% respectively.
The UAE will continue to implement its plan to issue local bonds for 2022 through more subsequent periodic auctions.
The conventional T-bonds will be denominated in UAE dirhams to develop the local bonds debt market and ultimately, the aim is to develop the mid-term yield curve, with tranches of two and three years, and in principle of five years as well, while ten-year tranches will be issued at a later time.-TradeArabia News Service
