Yields to maturity: 3.83% and 3.93% for May 2027 and September 2029 tranches, respectively, Spreads of 5 and flat basis points over comparable US Treasuries. Oversubscription reached 5.6 times.
The Ministry of Finance (MoF), acting as the issuer, collaborated with the Central Bank of the UAE (CBUAE) as the issuing and payment agent to complete the Islamic Treasury Sukuk (T-Sukuk) auction. The UAE Dirham-denominated issuance totaled AED 1.1 billion and is part of the 2025 T-Sukuk issuance program, as detailed on the MoF’s official website.
Yields and Program Boost Market Development
The auction received strong interest from eight primary dealers. Both tranches—maturing in May 2027 and September 2029—saw enthusiastic participation. In total, bids reached AED 6.12 billion. This also reflects an oversubscription rate of 5.6 times, highlighting strong investor confidence in the UAE’s credit profile and Islamic finance infrastructure.
Moreover, the auction delivered competitive, market-aligned pricing. The May 2027 tranche recorded a Yield to Maturity (YTM) of 3.83%, while the September 2029 tranche achieved 3.93%. These represent tight spreads of 5 and flat basis points, respectively, compared to equivalent US Treasury securities.
The T-Sukuk program is central to developing the dirham-denominated yield curve. It offers secure investment tools for diverse investors. In addition, it strengthens the local debt market, encourages wider investment participation, and contributes to the UAE’s long-term economic sustainability and development goals.
For more information, please visit https://mof.gov.ae/federal-debt-management-office.
