Media ININ Economy We Trust
The United Arab Emirates, represented by the Ministry of Finance in its capacity as the issuing authority and in cooperation with the UAE Central Bank in its capacity as the issuance and payment agent, announced the results of the first auction for the year 2023 for the issuance of treasury bonds (T-Bonds) denominated in UAE dirhams, as part of the treasury bond issuance program for the year 2023 as it was published. in the Treasury bond calendar earlier this year. And the Ministry of Finance had issued, in 2022, accumulated treasury bonds worth 9 billion dirhams over periods ranging between two, three and five years.
The first auction of the 2023 treasury bond program saw strong demand from the six main distributor banks, with bids worth AED 6.85 billion received and oversubscribed by 6.2 times. Demand was strong for the two tranches, and the final allocation came to 2-year bonds at 550 million dirhams, and 5-year bonds at 550 million dirhams, with a total of 1.1 billion dirhams for issuance in the first auction for the year 2023. The success is reflected in the market-driven premium prices, which were achieved by a difference of 10 points. 2-year basis, and 15 basis points spread for 5 years, according to the applicable US Treasury bond measure. Re-opening was practiced in this auction to build up the volume of individual bond issues with the aim of improving liquidity in the secondary market.
