$408mln offering issued in two tranches
The UAE sold 1.5 billion dirhams ($408 million) worth of treasury bonds during the third auction under the 9 billion dirhams bond issue program for 2022.
At the auction of treasury bonds denominated in ordinary dirhams, the offer was exceeded by more than five times, and bids worth 7.6 billion dirhams were submitted, the Ministry of Finance said on Monday.
The bonds were distributed in two tranches of two- and three-year bonds worth 750 million dirhams of the UAE each.
"The success (of the bond issue) is reflected in attractive market prices, which were achieved due to a spread of 16 bps on US Treasury bonds for two years and a spread of 15 bps on US Treasury bonds for 3 years," the ministry said in a statement.
The Ministry plans to issue six tranches of Treasury bonds in 2022 totaling 9 billion dirhams of the UAE.
The UAE sold the first bond, a triple tranche bond denominated in US dollars, in October last year. In 2018, the country issued a law allowing the federal government to start issuing sovereign debt.