May 23, 2024 (MLN): The Pakistan Stock Exchange (PSX) conducted an auction on Thursday for the sale of Government of Pakistan Ijara Sukuk (GIS) bonds, in which it raised Rs117.15 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 Rs307.26bn, out of which Rs92.44bn were received for GIS FRD, Rs134.82bn for GIS VRR and Rs80bn for GIS FRR, respectively.
From the aggregate bids received for the 1-year GIS FRD, a sum of Rs48.33bn was accepted, comprising Rs47.83bn in competitive bids and the remaining Rs501.08m in non-competitive bids.
The cut-off price for the respective bond stood at Rs83.45, which is a rental yield of 19.89%.
For the GIS VRR, the government raised a total amount of Rs23.79bn, entirely through the sale of 5-year GIS VRR as bids for the 3-year GIS VRR were rejected.
The cut-off price for this respective category of bond was 100.36.
Of the total Rs23.79bn, Rs23.58bn was accepted through competitive bids, while the remaining Rs208.3m comprised non-competitive bids.
Furthermore, the government raised Rs45.03bn through GIS 05-Year FRR at a cut-off price of 100.59, while the bids were rejected for GIS 03-Year FRR.
Competitive
Non-Competitive
Total
GIS FRD
47830.68
501.08
48331.76
GIS VRR
23580
208.3
23788.3
GIS FRR
45000
25.5
45025.5
Net Total
116410.68
734.88
117145.56
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.
