UAE Secures AED1.1 Billion Through May 2026 Treasury Bond Auction

In a successful collaboration, the UAE Ministry of Finance (MoF) and the Central Bank of the UAE (CBUAE) have closed the auction for May 2026 UAE dirham-denominated Treasury Bonds (T-Bonds), totaling AED1.1 billion raised.

This auction is a key aspect of the UAE’s annual T-Bond issuance initiative for 2026, as outlined by the Ministry of Finance. The Central Bank managed the issuance and payment process for this operation.

Demand from primary dealers was notably high, accumulating total bids of AED4.74 billion, indicating an oversubscription rate of 4.3 times. This showcases sustained investor trust in the UAE’s robust financial stability and dependable economy.

The issuance comprised two T-Bond tranches maturing in September 2027 and January 2031.

Competitive pricing was achieved during the auction, with a Yield to Maturity (YTM) of 4.03 percent for the September 2027 tranche and 4.30 percent for the January 2031 tranche. The spreads on yields were tightly recorded at up to 14 basis points over corresponding U.S. Treasury bonds at the issuance time.

Moreover, the Ministry has confirmed that the T-Bonds are now listed on Nasdaq Dubai, enhancing investor access and facilitating secondary market trading.

This event marks the UAE's third successful bond issuance since the onset of the regional conflict, collectively raising AED3.3 billion while garnering over AED14.5 billion in bids. The pricing spreads observed across these issuances varied between 6 and 23 basis points for maturities spanning 18 months to 7 years.

The T-Bond and T-Sukuk programmes of the UAE continue to be crucial for the development of the dirham-denominated yield curve, offering secure investment avenues, bolstering the local debt capital market, supporting the investment ecosystem, and furthering the UAE’s long-term economic growth and sustainability objectives.