The United Arab Emirates (UAE) has announced dates for the sale of treasury bonds issued in Emirati dirhams. 

The Ministry of Finance said the first auction will take place on May 9. Auctions will then repeat in June, August, September, October and December. The ministry and the Central Bank of the UAE will sell bonds with two-, three- and five-year tenures. They are targeting a sale worth 1.5 billion dirhams ($400 million) at each auction, The first auction will feature two- and three-year tenure bonds, according to data from the ministry. 

What is it? Treasury bonds, aka T-bonds, are debt securities that represent the obligation of the issuer — in this case, the state’s treasury — to repay the buyer. States sell bonds to finance their expenses. Bond purchasers are then repaid the debt amount over time with interest. 

Why it matters: The UAE announced its plan to sell bonds in dirhams last week. Finance Minister Mohamed Al Hussaini said they hope to build a local bond market, diversify their financial resources and boost the local banking sector by selling bonds in dirhams.