The Ministry of Finance of the United Arab Emirates, in collaboration with the Central Bank of the United Arab Emirates, announced the issuance of State Treasury “T Bond” bills worth 1.5 billion dirhams, with the aim of developing the local bond market and developing the returns over the medium term.
These bonds include tranches of varying duration between two and three years and five years initially, followed by a 10 year tranche. in a second time.
The exact date of the first auction, which will take place in May 2022, is expected to be announced shortly, subject to market conditions.
A series of subsequent periodic auctions will also follow, in in line with the proposed 2022 emissions plan.
Bashar Al-Natour, global head of Islamic finance at Fitch Ratings, explained that treasury bills can be used to control liquidity, provide financial instruments in which banks invest or to finance government projects, in addition to their role in the development of debt markets and the yield curve.
Al-Natour added in an interview with “Al Arabiya”, that the issuance by the United Arab Emirates of government “T Bond” treasury bonds worth 1.5 billion dirhams, is an important step for the development of the debt markets in the country, noting that the yield curve or price index for investors is the starting point.
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