UAE meets $400 million target in first bond auction
The Emirati government decided to sell bonds in dirhams to boost the local banking sector and diversify financially.
The United Arab Emirates released today the results of its first bond auction in dirhams.
The Ministry of Finance and the Central Bank of the UAE raised the equivalent of $408 million in the local currency. They sold equal amounts of two- and three-year bonds, the Ministry of Finance said in a statement.
Why it matters: The UAE decided last month to sell treasury bonds in dirhams in a bid to bolster the Emirati banking sector and diversify the government’s financial assets.
Treasury bonds are debt securities that in this case represent the UAE government’s obligation to repay the buyer for the designated amount plus interest. States often sell such bonds as a means to finance their expenses.
