Govt picks over Rs251bn through Sukuk auction via PSX against a target of Rs250bn

June 26, 2025 (MLN): The Pakistan Stock Exchange (PSX) conducted an auction today for the sale of Government of Pakistan Ijara Sukuk (GIS) bonds, raising Rs251.49bn against the Rs250bn target set for GIS Variable Rental Rate (VRR) and GIS Fixed Rental Rate (FRR) and GIS FRD.

According to the details made available by the local bourse, the bids received stood at Rs469.34bn, out of which Rs120.04bn were received for GIS FRD, Rs257.8bn for GIS VRR and Rs91.5bn for GIS FRR, respectively.

From the aggregate bids received for the 1-year GIS FRD, a sum of Rs47.87bn was accepted, comprising of Rs45.41bn in competitive bids and the remaining Rs2.46bn in non-competitive bids.

The cut-off price for the respective bond stood at Rs90.56, which is a rental yield of 10.45% (0.2bps).

For the GIS VRR, a total amount of Rs159.93bn was picked by the government, with Rs0m raised through the 3-year GIS VRR, Rs28.8bn through 5-year GIS VRR and Rs131.13bn from the sale of 10-year variable Sukuk.

Of the total Rs159.93bn, Rs159.3bn was accepted through competitive bids, while the remaining Rs625.01m comprised non-competitive bids accepted for the respective category of GIS bonds.

The cut-off price was Rs0 for GIS 03-Year VRR and Rs0 for GIS 05-Year VRR.

Meanwhile a total amount of Rs43.7bn from the GIS FRR, out of which Rs28.39bn was raised through the 3-year GIS VRR, Rs15.31bn through 5-year GIS VRR and Rs0m from the successful auction of 10-year Sukuk

The breakup of the target for today's auction shows that the aim was to raise Rs75m through the sale of 1-year GIS FRD, and Rs100m each for GIS VRR and Rs75m through GIS FRR.

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