Govt picks Rs25.41bn through Sukuk auction via PSX against Rs50bn target

April 09, 2024 (MLN): The Pakistan Stock Exchange (PSX) conducted an auction for the sale of Government of Pakistan Ijara Sukuk (GIS) bonds, raising Rs25.41 billion against the Rs50bn 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 Rs52.47bn, out of which Rs23.7bn were received for GIS FRD, Rs28.4bn for GIS VRR and Rs360.4m for GIS FRR, respectively.

From the aggregate bids received for the 1-year GIS FRD, a sum of Rs15.3bn was accepted, comprising of Rs15.12bn in competitive bids and the remaining Rs184.88m in non-competitive bids.

The cut-off price for the respective bond stood at Rs83.205, which is a rental yield of 20.24%.

For the GIS VRR, a total amount of Rs9.68bn was picked by the government, with Rs6.6m raised through the 3-year GIS VRR and Rs9.67bn through the sale of 5-year GIS VRR.

Of the total Rs9.68bn, Rs9.65bn was accepted through competitive bids, while the remaining Rs25.35m comprised non-competitive bids accepted for the respective category of GIS bonds.

The cut-off price was Rs100 for GIS 03-Year VRR and Rs98.37 for GIS 05-Year VRR.

Furthermore, the government raised Rs425.42m through GIS 03-Year FRR, while the bids were rejected for GIS 05-Year FRR.

The 3-year FRR bond was sold at a cut-off price of Rs100.12 in today's auction.

PSX Auction Summary

Amount in Rs Million

The breakup of the target for today's auction shows that the aim was to raise Rs10bn through the sale of 1-year GIS FRD, and Rs20bn each for GIS VRR and GIS FRR.

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