- Strong participation from all primary dealers, reflected in an oversubscription of 4.3 times with bids totalling AED 4.74 billion.
- Competitive Yield to Maturity (YTM) achieved of 4.03% for the September 2027 tranche and 4.30% for the January 2031 tranche.
- Tight pricing spreads of 14 basis points above comparable U.S. Treasury yields at the time of issuance.
- Strong demand reflects the resilience of the UAE economy, with the latest three issuances raising AED 3.3 billion at competitive pricing spreads.
Abu Dhabi, UAE:
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The Ministry of Finance (MoF), in its capacity as issuer and in collaboration with the Central Bank of the UAE (CBUAE) as issuing and payment agent, announced the successful completion of the May 2026 auctions of UAE dirham-denominated Treasury Bonds (T-Bonds) with a total issuance size of AED 1.1 billion. This auction is part of the Treasury Bonds scheduled annual issuance program for 2026, as published on the MoF’s official website.
The auctions witnessed strong participation from the primary dealers for the T-Bonds tranches maturing in September 2027 and in January 2031. Total bids reached AED4.74 billion, representing an oversubscription of 4.3 times. The strong demand reflects investors’ continued confidence in the UAE’s robust financial sector and resilient national economy.
The auction results were competitively priced with a YTM of 4.03% for the T-Bonds tranche maturing in September 2027 and 4.30% for the tranche maturing in January 2031. The yields achieved represent a comparative tight spread of up to 14 basis points above comparable U.S. Treasuries at the time of issuance. Additionally, the T-Bonds are listed with Nasdaq Dubai, enhancing investor access in the secondary market.
This marks the Third successful issuance since the onset of the regional conflict. Collectively, the three issuances raised a total of AED 3.3 billion and attracted bids exceeding AED 14.5 billion, with pricing spreads ranging between 6 basis points and 23 basis points across tenors spanning from 18 months to 7 years.
The AED T-Bond and T-Sukuk programmes play a vital role in supporting the development of the UAE’s dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Furthermore, it reinforces the local debt capital market, contributes to the development of the broader investment landscape, and supports the UAE’s long-term economic sustainability and growth objectives.
