Govt picks Rs207.6bn through Sukuk auction via PSX

September 16, 2024 (MLN): The Pakistan Stock Exchange (PSX) conducted an auction today for the sale of Government of Pakistan Ijara Sukuk (GIS) bonds, raising Rs207.56bn 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 Rs676.69bn, out of which Rs146.54bn were received for GIS FRD, Rs372.3bn for GIS VRR and Rs157.85bn for GIS FRR, respectively.

From the aggregate bids received for the 1-year GIS FRD, a sum of Rs42.24bn was accepted, comprising Rs33.41bn in competitive bids and the remaining Rs8.83bn in non-competitive bids.

The cut-off rental yield for the respective bond stood at 15%, down by 99 basis points compared to the previous auction.

For the GIS VRR, a total amount of Rs105.78bn was picked by the government, with Rs31.42bn raised through the 3-year GIS VRR, Rs41.89bn through the sale of 5-year GIS VRR, while the remaining Rs32.47bn was raised through the issuance of a new 10-year bond.

Of the total Rs105.78bn, Rs103.1bn was accepted through competitive bids, while the remaining Rs2.68bn comprised non-competitive bids accepted for the respective category of GIS bonds.

The cut-off yield was 13.89% for GIS 03-Year VRR and 13.845% for GIS 05-Year VRR, down by a substantial 111.17 and 53.5bps, respectively.

Meanwhile, a total amount of Rs59.54bn For the GIS FRR, out of which Rs37.8bn was raised through the 3-year GIS FRR and Rs21.21bn through the successful auction sale of 5-year GIS VRR. The remaining amount worth Rs525.51m was picked through the new issuance of the 10-year GIS FRR.

The cut-off yield also dropped across different period bonds for FRR bonds.

Amount in PKR Million

The breakup of the target for today's auction shows that the aim was to raise Rs100bn through the sale of 1-year GIS FRD, and Rs75bn each for GIS VRR and Rs75bn through GIS FRR.

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