Govt picks Rs106.25bn through Sukuk auction via PSX

May 10, 2024 (MLN): The Pakistan Stock Exchange (PSX) conducted an auction on Thursday for the sale of Government of Pakistan Ijara Sukuk (GIS) bonds, raising Rs106.25 billion against the Rs100bn 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 Rs303.66bn, out of which Rs57.23bn were received for GIS FRD, Rs246.15bn for GIS VRR and Rs275.4m for GIS FRR, respectively.

From the aggregate bids received for the 1-year GIS FRD, a sum of Rs54.59bn was accepted, comprising of Rs53.93bn in competitive bids and the remaining Rs667.08m in non-competitive bids.

The cut-off price for the respective bond stood at Rs83.23, which is a rental yield of 20.2%.

For the GIS VRR, a total amount of Rs51.48bn was picked by the government, with Rs650.5m raised through the 3-year GIS VRR and Rs50.83bn through the sale of 5-year GIS VRR.

Of the total Rs51.48bn, Rs51.1bn was accepted through competitive bids, while the remaining Rs380.15m comprised non-competitive bids accepted for the respective category of GIS bonds.

The cut-off margin for the 3-year GIS-VRR decreased by 10 bps, while conversely, the margin for the 5-year GIS-VRR increased by 28 bps compared to the last auction held on April 25, 2024.

Meanwhile, a total amount of Rs176.87m For the GIS FRR, out of which Rs75.68m was raised through the 3-year GIS FRR and Rs101.19m through the successful auction sale of 5-year GIS FRR.

Both the 3-year and 5-year bonds were sold at a cut-off price of Rs100.

PSX Auction Summary

Amount in Rs Million

The breakup of the target for today's auction shows that the aim was to raise Rs20bn through the sale of 1-year GIS FRD, and Rs40bn each for GIS VRR and Rs40bn through GIS FRR.

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