Latest news with #IslamicT-Sukuk
Mid East Info
23-05-2025
- Business
- Mid East Info
Islamic Treasury Sukuk Auction for May 2025 Attracts Bids Worth AED 6.93 Billion - Middle East Business News and Information
Marking an oversubscription of 6.3 times. Yield to Maturity (YTM) of 3.99% for the May 2027 tranche and 4.06% for the newly issued 5-Year tranche maturing in May 2030, with a tight spread of 2 and flat basis points respectively, above comparable US Treasuries at the time of issuance. Abu Dhabi, UAE: The Ministry of Finance (MoF), in its capacity as the issuer and in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and payment agent, announced the successful completion of the May 2025 auction of UAE Dirham-denominated Islamic Treasury Sukuk (T-Sukuk) amounting to AED 1.1 billion. This issuance forms part of the T-Sukuk issuance program for the year 2025, as published on the MoF's official website. The auction attracted robust demand from eight primary dealers across both tranches – re-opening of the May 2027 tranche and the newly issued 5-year tranche maturing in May 2030. The total bids received reached AED 6.93 billion, reflecting an oversubscription rate of 6.3 times, underscoring the strong confidence of investors in the UAE's creditworthiness and Islamic finance framework. The auction results highlighted competitive, market-driven pricing with a Yield to Maturity (YTM) of 3.99% for the May 2027 tranche and 4.06% for the May 2030 tranche. These yields represent a tight spread of 2 and flat basis points, respectively, above comparable US Treasuries at the time of issuance. The Islamic T-Sukuk program plays a vital role in supporting the development of the UAE's dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Furthermore, it reinforces the local debt capital market, contributes to the development of the broader investment landscape, and supports the UAE's long-term economic sustainability and growth objectives.
Zawya
24-04-2025
- Business
- Zawya
Islamic Treasury Sukuk Auction for April 2025 attracts bids worth $1.6bln
ABU DHABI: The Ministry of Finance (MoF), in its capacity as the issuer and in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and payment agent, successfully completed the auction of UAE Dirham-denominated Islamic Treasury Sukuk (T-Sukuk) amounting to AED 1.1 billion. This issuance forms part of the T-Sukuk issuance program for the year 2025, as published on the MoF's official website. The auction attracted robust demand from eight primary dealers across both tranches maturing in May 2027 and September 2029. The total bids received reached AED 6.12 billion, reflecting an oversubscription rate of 5.6 times, underscoring the strong confidence of investors in the UAE's creditworthiness and Islamic finance framework. The auction results highlighted competitive, market-driven pricing with a Yield to Maturity (YTM) of 3.83% for the May 2027 tranche and 3.93% for the September 2029 tranche. These yields represent a tight spread of 5 and flat basis points, respectively, above comparable US Treasuries at the time of issuance. The Islamic T-Sukuk program plays a vital role in supporting the development of the UAE's Dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Furthermore, it reinforces the local debt capital market, contributes to the development of the broader investment landscape, and supports the UAE's long-term economic sustainability and growth objectives.
Mid East Info
24-04-2025
- Business
- Mid East Info
Islamic Treasury Sukuk Auction for April 2025 Attracts Bids Worth AED 6.12Billion - Middle East Business News and Information
Oversubscription of 5.6 times. Yield to Maturity (YTM) of 3.83% and 3.93% for May 2027 and September 2029 tranches, with spreads of up to 5 and flat basis points, respectively, over comparable US Treasuries. The Ministry of Finance (MoF), in its capacity as the issuer and in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and payment agent, successfully completed the auction of UAE Dirham-denominated Islamic Treasury Sukuk (T-Sukuk) amounting to AED 1.1 billion. This issuance forms part of the T-Sukuk issuance program for the year 2025, as published on the MoF's official website. The auction attracted robust demand from eight primary dealers across both tranches maturing in May 2027 and September 2029. The total bids received reached AED 6.12 billion, reflecting an oversubscription rate of 5.6 times, underscoring the strong confidence of investors in the UAE's creditworthiness and Islamic finance framework. The auction results highlighted competitive, market-driven pricing with a Yield to Maturity (YTM) of 3.83% for the May 2027 tranche and 3.93% for the September 2029 tranche. These yields represent a tight spread of 5 and flat basis points, respectively, above comparable US Treasuries at the time of issuance. The Islamic T-Sukuk program plays a vital role in supporting the development of the UAE's dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Furthermore, it reinforces the local debt capital market, contributes to the development of the broader investment landscape, and supports the UAE's long-term economic sustainability and growth objectives.
Gulf Today
23-04-2025
- Business
- Gulf Today
T-Sukuk auction for April 2025 attracts bids worth Dhs6.12b
The Ministry of Finance (MoF), in its capacity as the issuer and in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and payment agent, successfully completed the auction of UAE Dirham-denominated Islamic Treasury Sukuk (T-Sukuk) amounting to Dhs1.1 billion. This issuance forms part of the T-Sukuk issuance programme for the year 2025, as published on the MoF's official website. The auction attracted robust demand from eight primary dealers across both tranches maturing in May 2027 and September 2029. The total bids received reached Dhs6.12 billion, reflecting an oversubscription rate of 5.6 times, underscoring the strong confidence of investors in the UAE's creditworthiness and Islamic finance auction results highlighted competitive, market-driven pricing with a Yield to Maturity (YTM) of 3.83% for the May 2027 tranche and 3.93% for the September 2029 tranche. These yields represent a tight spread of 5 and flat basis points, respectively, above comparable US Treasuries at the time of issuance. The Islamic T-Sukuk programme plays a vital role in supporting the development of the UAE's Dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Furthermore, it reinforces the local debt capital market, contributes to the development of the broader investment landscape, and supports the UAE's long-term economic sustainability and growth objectives. The results of the Islamic Treasury Sukuk (T-Sukuk) auction denominated in UAE dirhams, amounting to Dhs1.1 billion for February. This issuance is part of the Islamic T-Sukuk issuance programme for the first quarter of 2025 as published on the Ministry's website. The auction witnessed a strong demand from the eight primary dealers for both tranches maturing in August 2028 and September 2029, of the Islamic T-Sukuk, with bids received worth Dhs7.1 billion and an oversubscription by 6.5 times. The success is reflected in the attractive market driven prices, with a Yield to Maturity (YTM) of 4.18 per cent for the tranche maturing in August 2028 and 4.21 per cent for the tranche maturing on September 2029, representing a spread of one basis point above US Treasuries with similar maturities at the time of the auction. The Islamic T-Sukuk issuance programme will contribute to 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. ADIB profit rises 18%: Abu Dhabi Islamic Bank (ADIB) reported a Q1 2025 net profit before tax of Dhs1.9 billion, rising 18% year-on-year, reflecting a strong balance sheet growth, coupled with increased business momentum and a sustained customer growth. Q1 2025 net profit before tax increased 18% compared to Q4 2024, reflecting significant growth and reinforcing the positive trajectory we have built over recent quarters. Net profit after tax for Q1 2025 was Dhs 1.7 billion, reflecting a 18% increase compared to Q1 2024. Revenue for Q1 2025 improved by 14% to Dhs2.9 billion compared to Dhs2.5 billion for Q1 2024. This exceptional growth reflects broad-based performance across all key segments. This was supported by an increase in both income from financing activities and non-funding income. The strong business volumes along with continued strength in fee-based businesses, played a significant role in this improvement. Total assets increased by 25% year-on-year to reach Dhs244 billion. This growth was driven by financing growth in both retail and corporate banking, as well as an expansion in the investment financing grew by 28% year-on-year, representing Dhs33 billion increase compared to last year and Dhs8 billion increase year to date. This reflects market share gains across key segments and wholesale banking closing landmark deals. Customer deposits rose by 25% year-on-year to Dhs200 billion, compared with Dhs160 billion at Q1 2024. This growth maintained a healthy funding mix, with a 12% year-on-year growth in Current and Savings Accounts (CASA), which now comprise 69% of total deposits. Jawaan Awaidah Al Khaili, Chairman of ADIB, said: ''We started the year with a strong performance, continuing the positive trajectory built over previous quarters. Our results are a clear reflection of our ability to grow profitably and execute our strategy with discipline.' He concluded, 'This outstanding performance was underpinned by strong revenue growth across all segments, improved cost efficiency and the best asset quality metrics we've seen to date.' In 2024, ADIB achieved a record performance a with Net Profit after tax totalling Dhs6.1 billion, an increase of 16 percent compared with Dhs5.25 billion in 2023. Net Profit before tax increased by 26 per cent year-over-year (YoY) to Dhs6.9 billion. During the last quarter of 2024 (Q4 2024), net profit before tax reached Dhs1.6 billion, up 7 percent YoY. WAM
Zawya
10-04-2025
- Business
- Zawya
GCC on track to see an uptick in local currency sukuk
The local currency debt market in the Middle East is expected to gain traction through large sovereign issuances this year, with Qatar and Kuwait emerging as important players. 'I think local currencies are seeing an uptick in issuances, and a lot of it is being driven by the respective sovereigns and governments within the Middle East wanting to promote their local markets,' said Ali Taufeeq, Head of Sukuk MENAT, HSBC Bank Middle East. 'Southeast Asia obviously has been quite ahead in this game, starting from developing their local currency bond and sukuk market since the Asian financial crisis in 1997.' According to Taufeeq, in the GCC, Saudi Arabia has been the only market ahead of the curve, having established its Saudi Riyal Local Sukuk Program in 2017, 'but now we are seeing some of the other countries put a bit more emphasis on this as they develop domestic markets,' citing UAE's Islamic T-Sukuk issuance programme launched in 2023. A reversal in trend is now visible, say experts, following a year that saw local currency sukuk issuances decline by 14.6% year-on-year globally due to tightening fiscal policies in several key markets in 2024, according to S&P Global. The largest drop in local-currency issuance was in Malaysia, where government issuance decreased because of a smaller fiscal deficit due to the reduction of subsidies. Liquidity constraints also emerged as a key hurdle for markets such as Pakistan and Türkiye, while Indonesia's sovereign sukuk volume fell amid fiscal adjustments. Saudi was the only market that bucked this trend, which reported an increase in local currency sukuk issuances, particularly through large sovereign and retail offerings, just shy of $25 billion in 2024, and up from an estimated $18 billion in 2023. According to LSEG's MENA Investment Banking report 2024, December's Saudi Awwal Bank $1.06 billion Saudi riyal issuance was the biggest local currency sukuk last year. GCC market According to Taufeeq, over the last two years, the UAE has been taking a more active role with the federal government developing its local currency sukuk issuance programme to help diversify funding sources and minimise dependency on the foreign capital markets. The 2023 launch of the dirham-denominated Islamic Treasury Sukuk (T-Sukuk), with a benchmark auction size of AED1.1 billion ($299 million) was a step by the UAE to expand its investor base for local currency and help reduce exposure to rollover and foreign exchange fluctuation risks. 'In the UAE, in particular, we have seen several new issuers, the likes of Mubadala, Emirates Islamic Bank, First Abu Dhabi Bank, and we have seen the regulators really encourage them to go out and build this market, so that they are not only reliant on hard currency borrowing,' Taufeeq said. 'They are trying to develop a curve, and I think we are seeing that in the likes of Qatar and Kuwait as well.' According to Akber Khan, acting CEO of Al Rayan Investment, a subsidiary of the Qatar-based Islamic bank Masraf Al Rayan, the local currency debt market in Qatar is also expected to gain traction this year with more banks stepping into the game. 'The banks are well capitalised right now, but both sovereigns and corporates may well reach out to the debt markets if a lower oil price environment comes back,' said Khan, alluding to the volatility in wake of US President Donald Trump's tariff declaration on April 2, which is now on a 90-day pause for tariffs over the baseline, universal rate of 10%, following a late-night announcement on Wednesday, excluding China. While Saudi and the UAE have been active players in the local currency debt market, Khan called Qatar 'hesitant' in stepping up because it 'needs the additional resources a lot less,' while hinting the sovereign state could see a few issuances before the end of 2025. In 2023, the Doha-based Estithmar Holding issued a 500 million Qatari riyal ($137 million) sukuk, becoming the first corporate local currency-denominated sukuk in the country. The issuance was the first tranche of a QAR 3.4 billion sukuk programme, listed on the London Stock Exchange's international securities market. Emergence of Kuwait For investors in the region, Kuwait is now an area of focus, especially in the local currency market, following changes in its debt law, approved last month, which allows the government to borrow up to $99 billion over a period of 50 years to fund budget deficits and infrastructure projects beyond withdrawal from the Gulf state's financial reserves abroad. 'Kuwait is definitely an interesting market over the course of this year with a lot of changes happening. There's a new debt law in Kuwait; there's hundreds of billions of dollars of catch-up expenditure and CAPEX to be done across every sector of the economy. The banks are well capitalised, but both the sovereign and other corporates may well reach out to debt markets to help in that process. I think Kuwait will be something that people will focus on,' said Khan, especially as infrastructure needs rise in the country. According to Mohamad Safri Shahul Hamid, CEO of the International Islamic Liquidity Management Corporation (IILM), a governing body established by central banks to facilitate cross-border liquidity, developments in the GCC will give a boost to the local sukuk market this year. 'In terms of the promotion of local currency sukuks, countries such as Qatar and Kuwait will set the tone for the growth of the sukuk market this year. We are expecting between $190 billion to $200 billion of new sukuk to be issued this year and 35% of that is going to be due to sukuk which are maturing. But there will be some new sukuk issuances this year, and a lot of this will also be due to the growth of the local currency market in these respective countries, especially in in traditional markets such as Malaysia, and in new markets, including Qatar and Kuwait,' said Safri. According to Khan, the local currency issuance market can only grow given that the discussions are starting to happen globally about the place of the US dollar as a global currency. 'I don't think it is going anywhere for a long, long time, but it is nice to start having some alternatives in the form of local currencies, and the nice thing about that in our part of the world is we are all pegged to the dollar. So, from an international investors' perspective, we are not going to get that same currency volatility that they will have in the rest of the world. So that's obviously a positive.'
