- Yield to Maturity (YTM) of 3.66% for the Islamic T-Sukuk tranche maturing October 2027 and 3.90% for the T-Bond tranche maturing January 2031, at a tight spread of up to 9 basis points above comparable US Treasuries at the time of issuance.
Abu Dhabi, UAE – The Ministry of Finance (MoF), in its capacity as issuer and in collaboration with the Central Bank of the UAE (CBUAE) as issuing and payment agent, announced the successful completion of the January 2026 auctions of UAE dirham-denominated Treasury Islamic Sukuk (T-Sukuk) and Treasury Bonds (T-Bonds), with a total issuance size of AED 1.1 billion. These transactions represent the first issuances conducted under the T-Sukuk and T-Bonds programmes for the 2026 calendar year, as published on the MoF’s official website.
The new T-Bonds issuance also marks the first new tranche launched under the programme since March 2023, supporting the development of the AED yield curve and enhancing depth and liquidity in the secondary market.
The auctions witnessed strong participation from the primary dealers for the T-Sukuk maturing in October 2027 and the new T-Bonds tranche maturing in January 2031. Total bids reached AED 5.15 billion, representing an oversubscription of 4.7 times. This robust demand reflects investors’ confidence in the UAE’s robust financial sector and resilient national economy.
The auction results highlighted competitive, market-driven pricing with a YTM of 3.66% for the T-Sukuk tranche and 3.90% for the T-Bond tranche. These yields represent a tight spread of up to 9 basis points above comparable U.S. Treasuries at the time of issuance. Additionally, the T-Bonds & T-Sukuk are listed with Nasdaq Dubai, enhancing investor access in the secondary market.
With these issuances, the total outstanding under the programmes has reached AED 28 billion, spanning maturities from 2 to 5 years.
The AED T-Sukuk and T-Bond programmes play 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.
For more information, please visit https://mof.gov.ae/federal-debt-management-office/.