23-05-2025
Ministry of Finance Completes AED1.1 Billion Islamic T-Sukuk Auction with Strong Investor Demand
The UAE Ministry of Finance has successfully concluded its May 2025 auction of Islamic Treasury Sukuk (T-Sukuk), raising AED1.1 billion amid overwhelming investor interest and robust demand.
Conducted in coordination with the Central Bank of the UAE, the auction attracted total bids worth AED6.93 billion from eight primary dealers, reflecting an oversubscription rate of 6.3 times. The offering included a re-opening of the May 2027 tranche and a newly issued 5-year tranche maturing in May 2030.
Yields remained competitive, with the May 2027 tranche recording a Yield to Maturity (YTM) of 3.99%, while the May 2030 tranche closed at 4.06%. Both yields were closely aligned with U.S. Treasury benchmarks, demonstrating strong market confidence in the UAE's fiscal strength and Islamic finance infrastructure.
This issuance forms part of the Ministry's broader 2025 T-Sukuk programme, aimed at developing a dirham-denominated yield curve and providing secure investment options for institutional investors.
Officials highlighted that the success of the auction supports not only the UAE's domestic debt market but also reinforces the country's long-term economic sustainability goals.
News Source: Emirates News Agency
