The Ministry of Finance in the United Arab Emirates said today, Tuesday, that the fifth auction of treasury bonds, worth 9 billion dirhams, was very well received by the six main distributors banks.
The UAE Ministry of Finance added that bids worth 7.57 billion dirhams were received, and the volume of subscription exceeded 5 times, according to Al Bayan newspaper.
The ministry explained that the demand was strong for the two tranches, and the final allocation came on two-year bonds at 750 million dirhams, and in 3-year bonds at 750 million dirhams, with a total of 1.5 billion dirhams.
According to the financial statement, the success is reflected in the market-driven premium rates, which were achieved with a spread of 17 basis points on two-year US Treasuries, and a spread of 8 basis points on three-year US Treasuries.
Reissue was practiced in this auction to build up the volume of individual bond issuances with the aim of improving liquidity in the secondary market.
It is worth noting that treasury bonds in the local currency in the UAE build a yield curve denominated in dirhams, which contributes to enhancing the competitiveness of the local debt capital market, improving the investment environment, providing safe investment alternatives for investors, as well as supporting sustainable economic growth.
