Listing of the first dirham-denominated treasury bonds on Nasdaq Dubai

Minister of State of Finance Mohammed bin Hadi Al Husseini this morning rang the bell at Nasdaq Dubai in celebration of 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 UAE Central Bank – Monetary Policy and Financial Stability, Hamed Ali, CEO of Dubai Financial Market and Nasdaq Dubai, and CEOs of the six major participants banks, in addition to a number of senior officials from various participating entities.

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 with a value of 9 billion dirhams during 2022, where the value of the two parts (for two and three years) in the first auction amounted to 1.5 billion dirhams, with an interest rate 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.

The Minister of State for Finance, Muhammad bin Hadi Al-Husseini, emphasized that the success achieved by the first auction of federal treasury bonds was a new step in strengthening the strength of the national economy and sustainable economic development. to bring about. This is proof. 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 The national economy will continue its momentum and leadership during the next phase in the framework of the transition to the new economic model within projects The fiftieth year, in which the UAE establishes a diversified knowledge economy based on innovation, leadership and advanced industries .

In turn, the Governor of the UAE Central Bank, Khalid Mohammed Balama, said: “The issuance of securities in the UAE dirham comes within the framework of the UAE’s zeal and commitment to develop capital market activities and its position as’ n global It 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, Neddaq Dubai and Dubai Financial Market CEO Hamed Ali 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 inclusion of treasury bonds denominated in the local currency dirham confirms the strategic commitment to strengthen capital market activities, particularly the debt market, through the issuance of sovereign bonds Nasdaq Dubai’s welcome of the second listing of bonds by the federal government within six months is the best proof of the great confidence in the structure of the integrated and world-class financial markets provided by the stock exchange, which supports the Issuance and listing of fixed-income instruments issued by sovereign and commercial entities locally and globally.

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 six 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, Mashreq include. and Standard Chartered.

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