Ministry matters

The Ministry of Finance announces the second auction of three…

(MENAFN – Emirates News Agency (WAM))

ABU DHABI, 18th June, 2022 (WAM) — In its capacity as issuer, the Ministry of Finance (MoF), has announced that the second auction of Federal Treasury Bonds (T-Bonds) will be held on Monday, June 20 , with an auction size of AED1.5 billion split into two tranches: a two-year tranche worth AED750 million and a three-year tranche worth AED750 million AED.

The reopening of the bonds will be exercised during this auction to increase the volume of individual bonds issued with the aim of improving liquidity in the secondary market.

The first auction of the AED-denominated T-Bonds program saw wide participation from local and international investors, with a total issuance of AED 1.5 billion divided into two tranches – two and three years – and a uniform coupon rate set at 3.01% and 3.24% respectively.

The UAE will continue to implement its local bond issuance plan for 2022 through subsequent periodic auctions. Conventional T-bonds will be denominated in Emirati dirhams to develop the local bond and term debt market, the objective is to develop the medium-term yield curve, with two and three-year tranches, and in principle also five years, while ten-year tranches will be issued later.

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