UAE launches domestic dirhams treasury bonds with a size of $400m
The issuance will provide foreign investors with an opportunity to invest in bonds denominated in local currency The UAE announced the launch of conventional dirham denominated treasury bonds with a benchmark size of Dh1.5 billion ($400 million) to build a local currency bond market and diversify financing resources. The T-bonds will be issued initially in two-, three- and five-year tenures and will be followed by a 10-year bond at a later date, the UAE’s Ministry of Finance said in a statement on Wednesday. T-bonds are fixed-rate government debt securities that pay semi-annual interest payments until maturity, which could be between 10 and 30 years, according to Investopedia. They are also considered relatively risk-free. “Issuing the T-Bonds in local currency will contribute to building a local currency bond market, diversifying financing resources, boosting the local financial and banking sector, as well as providing safe investment alternatives for local and foreign inve...