UAE’s first T-Bond auction a huge success

The first auction of the UAE's dirham-denominated treasury bonds has been a huge success.

It was oversubscribed 6.3 times and achieved bids worth AED 9.4 billion.

The strong demand reflects rising confidence in the UAE’s financial policies and its future development plans.

A series of periodic auctions will soon follow.

The securities will be initially issued in two, three, and five year tenures, followed by a 10-year bond at a later date.

The UAE government is represented by the Ministry of Finance as the issuer, in collaboration with the Central Bank of the UAE as the issuing and payment agent.

Commenting on the successful launch of the UAE T-bonds programmes, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, said that the first auction's success is part of strengthening the UAE’s economic competitiveness and supporting the sustainability of economic growth.

He also invited international investors to participate in the T-bonds issuance programme which is widely open for all eligible investors, and will soon be followed by a listing on Nasdaq Dubai to promote secondary market trading along with primary dealers.

"The Federal T- bond issuance constitutes a new phase in promoting the robust performance of the UAE’s financial sector, providing safe and advanced dirham-denominated investment. It will achieve the objectives of the new Dirham Monetary Framework," explained His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Presidential Affairs and Chairman of the Board of Directors of the Central Bank of the UAE.