Govt picks Rs138.19bn through Sukuk auction via PSX against a target of Rs250bn

January 09, 2025 (MLN): The Pakistan Stock Exchange (PSX) conducted an auction for the sale of Government of Pakistan Ijara Sukuk (GIS) bonds, raising Rs138.19 billion against the Rs250bn target set for GIS Variable Rental Rate (VRR), GIS Fixed Rental Rate (FRR), and GIS FRD.

According to the details made available by the local bourse, the bids received stood at Rs536.08bn, out of which Rs107bn were received for GIS FRD, Rs344bn for GIS VRR and Rs85.09bn for GIS FRR, respectively.

From the aggregate bids received for the 1-year GIS FRD, Rs37.73bn was accepted, comprising Rs31.96bn in competitive bids and the remaining Rs5.77bn in non-competitive bids.

The cut-off price for the respective bond stood at Rs90.59, which is a rental yield of 10.42% (-0.58bps).

For the GIS VRR, a total amount of Rs87.7bn was picked by the government, with Rs1.46bn raised through the 3-year GIS VRR, Rs21.53bn through 5-year GIS VRR and Rs64.71bn from the sale of 10-year variable Sukuk.

Of the total Rs87.7bn, Rs85.16bn was accepted through competitive bids, while the remaining Rs2.54bn comprised non-competitive bids accepted for the respective category of GIS bonds.

Meanwhile a total amount of Rs12.76bn from the GIS FRR, out of which Rs705.07m was raised through the 3-year GIS VRR, Rs11.79bn through 5-year GIS VRR and Rs262.5m from the successful auction of 10-year Sukuk. 

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

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