Govt picks Rs251bn through Sukuk auction via PSX

October 18, 2024 (MLN): The Pakistan Stock Exchange (PSX) conducted an auction today for the sale of Government of Pakistan Ijara Sukuk (GIS) bonds, raising Rs251.02bn against the Rs500bn 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 Rs952.9bn, out of which Rs254.51bn were received for GIS FRD, Rs554.89bn for GIS VRR and Rs143.49bn for GIS FRR, respectively.

From the aggregate bids received for the 1-year GIS FRD, a sum of Rs73.31bn was accepted, comprising Rs66.22bn in competitive bids and the remaining Rs7.09bn in non-competitive bids.

The cut-off rental yield for the respective bond stood at 11.75%, down by 325 basis points compared to the previous auction.

For the GIS VRR, a total amount of Rs140.69bn was picked by the government, with Rs51.4bn raised through the 3-year GIS VRR, Rs38.56bn through the sale of 5-year GIS VRR, while the remaining Rs50.73bn through the sale of 10-year GIS VRR.

Of the total Rs140.69bn, Rs137.75bn was accepted through competitive bids, while the remaining Rs2.94bn comprised non-competitive bids accepted for the respective category of GIS bonds.

The cut-off margin showed a drop of 56 basis points for the 3-Year GIS VRR, 40 basis points for the 5-Year GIS, and 5 basis points for the 5-Year GIS VRR.

Furthermore, a total amount of Rs37.02bn For the GIS FRR, out of which Rs4.99bn was raised through the 3-year GIS FRR, Rs25.94bn through the successful auction sale of 5-year GIS FRR and Rs6.1bn from 5-year bond.

The cut-off rental yield for FRR bonds also dropped by 189, 132, and 30 basis points for the 2, 3, and 5-year bonds, respectively.

Amount in PKR Million

The breakup of the target for today's auction shows that the aim was to raise Rs200bn through the sale of 1-year GIS FRD, and Rs150bn each for GIS VRR and Rs75bn through GIS FRR.

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