T-Sukuk auction for April 2025 attracts bids worth Dhs6.12b

The Ministry of Finance (MoF), in its capacity as the issuer and in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and payment agent, successfully completed the auction of UAE Dirham-denominated Islamic Treasury Sukuk (T-Sukuk) amounting to Dhs1.1 billion. This issuance forms part of the T-Sukuk issuance programme for the year 2025, as published on the MoF’s official website.

The auction attracted robust demand from eight primary dealers across both tranches maturing in May 2027 and September 2029. The total bids received reached Dhs6.12 billion, reflecting an oversubscription rate of 5.6 times, underscoring the strong confidence of investors in the UAE’s creditworthiness and Islamic finance framework.The auction results highlighted competitive, market-driven pricing with a Yield to Maturity (YTM) of 3.83% for the May 2027 tranche and 3.93% for the September 2029 tranche. These yields represent a tight spread of 5 and flat basis points, respectively, above comparable US Treasuries at the time of issuance. The Islamic T-Sukuk programme plays a vital role in supporting the development of the UAE’s Dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Furthermore, it reinforces the local debt capital market, contributes to the development of the broader investment landscape, and supports the UAE’s long-term economic sustainability and growth objectives.

The results of the Islamic Treasury Sukuk (T-Sukuk) auction denominated in UAE dirhams, amounting to Dhs1.1 billion for February.

This issuance is part of the Islamic T-Sukuk issuance programme for the first quarter of 2025 as published on the Ministry’s website.

The auction witnessed a strong demand from the eight primary dealers for both tranches maturing in August 2028 and September 2029, of the Islamic T-Sukuk, with bids received worth Dhs7.1 billion and an oversubscription by 6.5 times.

The success is reflected in the attractive market driven prices, with a Yield to Maturity (YTM) of 4.18 per cent for the tranche maturing in August 2028 and 4.21 per cent for the tranche maturing on September 2029, representing a spread of one basis point above US Treasuries with similar maturities at the time of the auction.

The Islamic T-Sukuk issuance programme will contribute to building the UAE dirham denominated yield curve, providing safe investment alternatives for investors, strengthening the local debt capital market, developing the investment environment, as well as supporting sustainable economic growth.

ADIB profit rises 18%: Abu Dhabi Islamic Bank (ADIB) reported a Q1 2025 net profit before tax of Dhs1.9 billion, rising 18% year-on-year, reflecting a strong balance sheet growth, coupled with increased business momentum and a sustained customer growth. Q1 2025 net profit before tax increased 18% compared to Q4 2024, reflecting significant growth and reinforcing the positive trajectory we have built over recent quarters. Net profit after tax for Q1 2025 was Dhs 1.7 billion, reflecting a 18% increase compared to Q1 2024.

Revenue for Q1 2025 improved by 14% to Dhs2.9 billion compared to Dhs2.5 billion for Q1 2024. This exceptional growth reflects broad-based performance across all key segments. This was supported by an increase in both income from financing activities and non-funding income. The strong business volumes along with continued strength in fee-based businesses, played a significant role in this improvement.

Total assets increased by 25% year-on-year to reach Dhs244 billion. This growth was driven by financing growth in both retail and corporate banking, as well as an expansion in the investment portfolio.Customer financing grew by 28% year-on-year, representing Dhs33 billion increase compared to last year and Dhs8 billion increase year to date. This reflects market share gains across key segments and wholesale banking closing landmark deals. Customer deposits rose by 25% year-on-year to Dhs200 billion, compared with Dhs160 billion at Q1 2024. This growth maintained a healthy funding mix, with a 12% year-on-year growth in Current and Savings Accounts (CASA), which now comprise 69% of total deposits.

Jawaan Awaidah Al Khaili, Chairman of ADIB, said: ‘’We started the year with a strong performance, continuing the positive trajectory built over previous quarters. Our results are a clear reflection of our ability to grow profitably and execute our strategy with discipline.”

He concluded, “This outstanding performance was underpinned by strong revenue growth across all segments, improved cost efficiency and the best asset quality metrics we’ve seen to date.”

In 2024, ADIB achieved a record performance a with Net Profit after tax totalling Dhs6.1 billion, an increase of 16 percent compared with Dhs5.25 billion in 2023.

Net Profit before tax increased by 26 per cent year-over-year (YoY) to Dhs6.9 billion.

During the last quarter of 2024 (Q4 2024), net profit before tax reached Dhs1.6 billion, up 7 percent YoY.

WAM