![](https://english.aawsat.com/sites/default/files/styles/article_img_top/public/2022/08/02/uae_finance_ministry_wam.jpg?itok=O0gEO3ht)
The United Arab Emirates, represented by the Ministry of Finance as the issuer, in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and paying agent, announced Monday the results of the third auction of the Treasury Bonds program (T-Bonds).
This program is part of the AED9 billion ($408.2 million) T-Bond issuance program for 2022 as published in the T-Bonds calendar earlier this year.
According to the Finance Ministry, the auction witnessed a strong demand through the six primary bank dealers, with bids received worth AED7.6 billion ($2 billion), and an oversubscription by 5.1 folds.
The strong demand was on both tranches with a final allocation of AED750 million ($204.1 million) for the two-year tranche and AED750 million ($204.1 million) for the three-year tranche, with a total of AED1.5 billion ($408.2 million) issued in the third auction.
The Ministry said this success is reflected in the attractive market driven prices, which was achieved by a spread of a 16 basic points (bps) over US Treasuries for two years, and a spread of 15 bps over US Treasuries for three years.
The third auction followed the practice of re-opening the T-Bonds, which helps in building up the size of individual bond issues over time and improve liquidity in the secondary market.
The T-Bonds program will contribute in 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.
Separately, the CBUAE announced that the gross banks’ assets, including bankers’ acceptances, rose to AED3.442 billion ($936 billion) by late May 2022, up 2.9% compared to AED3.344 billion ($910 million) by late April 2022.
In its report on the Monetary and Banking Developments for May 2022, the bank said that the gross credit grew by 2.6%, up from AED1.817 billion by late April 2022 to AED1.865 billion ($507 billion) by late May 2022.
Gross credit rose due to 3% increase in domestic credit, overriding the 0.1 percent reduction in foreign credit.