UAE raises $300m from first T-bond after start of regional conflict

The UAE has raised AED1.1 billion ($300 million) through its first UAE dirham-denominated treasury bond auction following the start of the US-Israel-Iran conflict.

The auction witnessed high demand from primary dealers for the T-bonds maturing in September 2027 and January 2031. Total bids reached AED4.9 billion, an oversubscription of 4.4 times, the state-run Wam news agency reported, quoting the finance ministry.

The yield to maturity or anticipated return stands at 3.73 percent and 3.85 percent for the T-bond tranches maturing in September 2027 and January 2031. 

The ministry said the demand reflects investors’ continued confidence in the UAE’s financial sector and resilient national economy during market uncertainty.

The yields achieved represent a comparative tight spread of up to 16 basis points above comparable US Treasuries at the time of issuance.

The bonds will be listed with Nasdaq Dubai, improving investor access in the secondary market. The Central Bank of the UAE is the issuing and payment agent.

In February, the order book for Abu Dhabi’s two-tranche US dollar-denominated bond sale exceeded $11 billion. 

The UAE cabinet approved the federal budget for 2026 in October, with estimated revenue of AED92.4 billion and similar, balanced expenditure.

In July the UAE announced a federal allocation of AED900 billion for its 2027-2029 budget cycle. 

• UAE banks can withstand Iran war stresses, says governor
• UAE spent $1bn a day downing missiles and drones, analysts say
• UAE stocks fall but investors spot openings in utilities