The second auction of the Dh1.1 billion UAE T-Bond programme in 2023 witnessed a strong demand through the six primary dealers, with bids received worth Dh5.51 billion, and an oversubscription by five times, the Ministry of Finance said on Tuesday.

“The strong demand was across both tranches with a final allocation of Dh550 million for the 2-year tranche and Dh550 million for the 3-year tranche, with a total of Dh1.1 billion issued in the auction. The success is reflected in the attractive market-driven price at the time of the auction; the T-Bonds achieved pricing of 5-20bps over the applicable US Treasury benchmark with a similar maturity. This auction followed the practice of re-opening the T-Bonds, which helps in building up the size of individual bond issues over time and improves liquidity in the secondary market.

In 2022, MoF issued T-bonds aggregating to Dh9 billion across tenors of two years, three years, and five years.

“The T-Bonds programme will contribute to building the UAE dirham-denominated yield curve, strengthening the local debt capital market, developing the investment environment, providing safe investment alternatives for investors, as well as supporting sustainable economic growth,” said the MoF statement.