The UAE sold AED1.5 billion ($408 million) treasury bonds during a third auction, part of the AED9 billion T-Bonds issuance program for 2022.

The auction of the conventional dirham-denominated treasury bonds was oversubscribed by more than five times and notched up bids worth AED7.6 billion, the Ministry of Finance said on Monday.

The bonds were distributed in two tranches of two and three-year notes, valued at AED750 million each.

"The success (of the bond issue) is reflected in the attractive market driven prices, which was achieved by a spread of 16 bps over US Treasuries for two years, and a spread of 15 bps over US Treasuries for 3 years," the ministry said in a statement.

The ministry plans to issue six treasury bond tranches in 2022 with a total value of AED9 billion.

The UAE had sold the first bond, a triple-tranche US dollar-denominated bond, in October last year. In 2018, the country issued a law allowing the federal government to begin issuing sovereign debt.

(Reporting by Brinda Darasha; editing by Cleofe Maceda)