The latest AED 1.1 bn Islamic Treasury Sukuk (T-Sukuk) issued by the Central Bank of the UAE (CBUAE) was 6.3x oversubscribed, according to a Finance Ministry statement. The issuance is part of the Islamic T-Sukuk program for 1Q 2025, Wam reports.

The details: The tranche maturing in May 2027 achieved a yield to maturity of 4.3%, while the September 2029 tranche reached 4.4%, with bids received worth AED 6.9 bn. These yields represent a spread of 7 and 10 basis points above US treasuries with similar maturities at the time of the auction.

REMEMBER- The CBUAE's AED 1.1 bn T-Sukuk auctioned in November 2024 was 4.9x oversubscribed, attracting AED 5.4 bn in bids. The May 2027 tranche yielded 4.3%, while the September 2029 tranche offered a yield of 4.38%. Another AED 1.1 bn T-Sukuk began trading on Nasdaq Dubai in November, with the May 2027 tranche priced at 4.57% and the September 2029 tranche at 3.65%.

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