UAE: Ministry of Finance announces second auction of federal treasury bonds

The UAE’s Ministry of Finance (MoF) announced the second auction of federal treasury bonds (T-bonds).

The auction will be held on Monday, June 20, with an auction size of Dhs1.5bn distributed over two tranches: a two-year tranche valued at Dhs750m, and a three-year tranche valued at Dhs750m. The second auction is part of the Dhs9bn T-Bonds issuance programme for 2022.

The first auction of the dirham-denominated T-Bonds programme reported significant turnout from local and international investors, with a total issuance of Dhs1.5bn divided into two tranches – of two and three years – and a uniform coupon rate fixed at 3.01 per cent and 3.24 per cent respectively.

Read: UAE to launch domestic dirhams Treasury Bonds worth Dhs1.5bn

The UAE will continue to implement its plan to issue local bonds for 2022 through more periodic auctions, a statement said.

The conventional T-bonds will be denominated in UAE dirhams to develop the local bonds debt market.

Meanwhile, the ministry aims to develop the mid-term yield curve, with tranches of two and three years, and in principle of five years too, while ten-year tranches will be issued at a later time, the statement added.