Home Industry Finance UAE’s MoF issues Dhs1.1bn Islamic treasury sukuk for Aug The Islamic T-Sukuk issuance programme aims to build a UAE-dirham denominated yield curve and boost the local debt capital market by Gulf Business August 30, 2024 Image: Getty Images The UAE’s Ministry of Finance, in collaboration with the Central Bank of the UAE (CBUAE), has successfully issued Dhs1.1bn in Islamic treasury sukuk (T-Sukuk) as part of its August 2024 issuance programme, the ministry announced on Thursday. The auction, which featured two tranches maturing in May 2026 and May 2027, saw robust demand from investors, with bids totalling Dhs6.32bn — an oversubscription of 5.7 times. The yield to maturity (YTM) for the May 2026 tranche was set at 4.04 per cent, while the May 2027 tranche achieved a YTM of 3.88 per cent. These yields represent a spread of 0 to 9 basis points above comparable US Treasuries. Sukuk aimed at creating a Dhs-denominated yield curve The Islamic T-Sukuk programme is aimed at establishing a UAE dirham-denominated yield curve, offering secure investment options, and bolstering the local debt capital market. The ministry highlighted that this initiative supports the development of the investment environment and promotes sustainable economic growth in the region. Read: MENA sukuk market flourishes in H1, fuelled by ESG, sovereign issuances Tags Islamic finance Ministry of Finance Sukuk UAE You might also like UAE fines foreign bank Dhs5m for money laundering breaches Flying taxi firm Joby applies for aircraft certification in the UAE Are you a ‘citizenship by descent’ candidate? 5 key strategies for business success in the Middle East