UAE - Mubasher: The Central Bank of the UAE (CBUAE) will launch Monetary Bills (M-bills), a securities issuance programme to licensed financial institutions and investors, in collaboration with Euroclear Bank and Bloomberg, according to the Emirates News Agency (WAM).
To be effective from 11 January 2021, these securities will be auctioned and traded through Bloomberg’s primary and secondary market solutions and settled through a local platform built and operated by Brussels-based Euroclear Bank.
Investors will be able to have broader access to the M-Bills market through Euroclearable domestic platform, in addition to the auctioning and tradability of the M-Bills through the Bloomberg Bond Auction and E-Bond systems.
The new issuance programme aims to manage liquidity in the UAE banking sector and replace the existing conventional certificates of deposit programme.
The Deputy Governor of the CBUAE, Saif Hadef Al Shamsi, said: "We are confident that the set-up of such infrastructure will also assist in the development of a Dirham local market for securities issued by the public sector in the UAE in future."
Meanwhile, the Global Head of Capital Markets and Funds Services at Euroclear, Stephan Pouyat, commented: "As a result of our collaboration with the Central Bank of the UAE and Bloomberg, we have together been able to achieve a market first offering. This solution is an efficient, end-to-end local solution that will bring value and opportunities to local investors."
