CBUAE’s November T-Sukuk auction was 5x oversubscribed

The Central Bank of the UAE's (CBUAE) AED 1.1 bn T-Sukuk auction in November was 5x oversubscribed, receiving AED 5.5 bn in bids, with participation from eight primary investors, state news agency Wam reports.

The auction included two tranches: The first is set to mature in October 2027, offering a yield of 3.52%, and the second will mature in May 2030 with a yield of 3.63%. The yields represent a spread of 5 basis points above comparable US Treasuries.

November’s auction — the final one this year — builds on successive oversubscribed auctions, including October’s with 4.2x demand, September’s with 4.6x demand, and July’s auction, which saw 5x demand and received AED 4.5 bn in bids. June’s auction drew AED 6.2 bn in bids and was 5.6x oversubscribed, May’s was 6.3x oversubscribed, and April’s AED 6.12 bn auction had a subscription rate of 5.6x.

REMEMBER- The Finance Ministry recently opened up its T-sukuk to retail investors, allowing individuals to directly invest in shariah-compliant, government-backed treasury sukuk through national banks. The initiative aims to boost financial inclusion and widen the investor base for government-backed financial instruments. Abu Dhabi Islamic Bank was named as the first participating bank, and Emirates NBD joined the initiative last month.