Martin Griffiths says battles near the Rafah and Kerem Shalom crossings in Gaza's south meant the vital routes are effectively blocked
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UAE on Monday raised Dh1.5 billion during the second auction of Dh9 billion treasury bonds programme and witnessed a strong demand through the six primary bank dealers.
In a statement, the Ministry of Finance said the government received bids worth Dh9.7 billion during the second auction of its local currency-denominated bond auction and it was oversubscribed by 6.5 times. The Ministry of Finance is issuing the bond in collaboration with the Central Bank of UAE.
“The strong demand was across both tranches with a final allocation of Dh750 million for the two-year tranche and Dh750 million for the three-year tranche, totalling Dh1.5 billion issued in the second auction,” according to the ministry statement.
Periodic auctions planned
In May, the first auction of UAE’s treasury bonds received bids worth Dh9.4 billion, oversubscribed 6.3 times. The securities will be issued initially in 2-, 3-, and 5-year tenures, followed by a 10-year bond at a later date.
The second auction will be followed by a series of subsequent periodic auctions, in line with the proposed 2022 issuance plan. The T-Bonds will be denominated in UAE dirham to develop the local bonds debt market and to develop the mid-term yield curve.
“The success is reflected in the attractive market driven prices, which was achieved by a spread of a 27bps over US Treasuries for two years, and a spread of 25bps over US Treasuries for three years,” the statement said.
Building dirham bonds market
The latest treasury bond issue comes in the wake of the first federal bond launched in October 2021 after the government passed a law in 2018 allowing the federal government to issue sovereign debt for the first time to finance infrastructure projects and investments by its sovereign wealth fund.
The second auction followed the practice of re-opening the T-Bonds which helps in building up the size of individual bond issues over time and improve liquidity in the secondary market.
The T-Bonds programme will contribute in building the UAE dirham denominated yield curve, providing safe investment alternatives for investors, strengthening the local debt capital market, developing the investment environment, as well as supporting sustainable economic growth.
— muzaffarrizvi@khaleejtimes.com
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