List of 1.5 billion dirhams government bonds on Nasdaq Dubai

Mohammed bin Hadi Al Husseini, Minister of State of Finance, this morning rang the bell at Nasdaq Dubai to celebrate the listing and circulation of the first issue of government treasury bonds denominated in the local currency, the dirham, issued by the federal government . by the Ministry of Finance, with a total value of 1.5 billion dirhams.

This issue comes as part of an ambitious strategy that includes a series of issues of government bonds to develop the fixed income market in the United Arab Emirates by providing investors with investment opportunities in sovereign spending, and an appropriate measure of the return on investment curve. . in debt instruments.

The bell-ringing ceremony was held in the presence of Ibrahim Al Zaabi, Assistant Governor of the Central Bank of the Emirates – Monetary Policy and Financial Stability, Hamed Ali, CEO of Dubai Financial Market and “Nasdaq Dubai”, and CEOs of the six large participating banks, in addition to a number of senior officials from various participating parties.

The first issuance of the UAE dirham-denominated federal treasury bond program has garnered widespread response from investors in the region and the world, as the volume of subscriptions reached 6.3 times during the first auction, which was successfully completed this week has. The ministry is working to issue 6 treasury bonds during 2022, with a value of 9 billion dirhams, as the value of the two parts (for two and three years) in the first auction amounted to 1.5 billion dirhams, with interest rates of 3.01% and 3.24%, respectively, while the issue The other parts are later this year with various periods of up to 5 years.

Mohammed bin Hadi Al Husseini, Minister of State of Finance, stressed that the success achieved by the first auction of federal treasury bonds is a new step in strengthening the national economy and achieving sustainable economic development, and came as a continuation of the UAE Government’s efforts to improve and develop the financial market and improve the investment environment This is a testament to the strength of the creditworthiness that the country enjoys as one of the most competitive and advanced economies in the world.

He pointed out that the demand for treasury bonds confirms the position and confidence enjoyed by the UAE, as the ideal investment destination for investors and entrepreneurs in the region, due to the comprehensive logistics and infrastructure it provides. His Excellency said: “The Federal Treasury bond program contributes to the revitalization of the local financial and banking sector, provides alternative financing opportunities for investors, and reflects the strength of economic development indicators, the stability of the financial system and the resilience of the economy. The national economy will continue its momentum and leadership in the next phase in the context of the transition to the new economic model within the fifty projects, whereby the UAE is establishing a diversified knowledge economy based on innovation, leadership and advanced industries. ”

In turn, Khalid Mohammed Balama, Governor of the UAE Central Bank, said: “The issuance of bonds in the UAE dirham comes within the framework of the UAE’s zeal and commitment to develop capital market activities and its position as a consolidating global financial enterprise, which also confirms the strength and stability of the financial system and the confidence of local and international investors in the UAE’s ability to develop the financial sector in line with monetary policy and strategic plans.

In turn, Hamed Ali, CEO of Nasdaq Dubai and the Dubai Financial Market, said: “NASDAQ Dubai is pleased to contribute effectively to the achievement of the UAE Government’s strategic objectives in the development of the capital markets in the country. . The inclusion of treasury bonds denominated in the local currency, the dirham, confirms the strategic commitment to strengthening capital market activities, in particular the debt market, through the issuance of sovereign bonds. Nasdaq Dubai’s welcome of the second listing of bonds by the federal government within 6 months provides the best evidence of the great confidence in the structure of the integrated and world-class financial markets provided by the stock exchange, the issuance and listing of fixed income support. instruments issued locally and globally by sovereign and commercial entities. ”

It is noteworthy that in October 2021, the Ministry of Finance listed the UAE sovereign bond worth $ 4 billion as the first issuance of UAE sovereign bonds on Nasdaq Dubai. Today’s listing of Treasury bonds strengthens Nasdaq Dubai’s position as the leading platform for listing fixed income instruments locally and internationally in the Middle East totaling $ 102 billion. The Ministry of Finance has appointed 6 agent banks as the primary distributors for participants in the initial auction of T-Bonds and is responsible for the development of the secondary market, which includes: Abu Dhabi Commercial Bank, Emirates NBD, First Abu Dhabi Bank, HSBC Bank, Mashreq Bank and Standard Chartered.

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