February 20, 2024 (MLN): The Pakistan Stock Exchange (PSX) conducted an auction today for the sale of Government of Pakistan Ijara Sukuk (GIS) bonds, raising Rs45.6 billion against the Rs150bn 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 Rs121.29bn, Rs110.53bn, and Rs5bn for the sale of GIS FRD, GIS VRR, and GIS FRR, respectively.
Out of the total bids received for the 1-year GIS FRD, a sum of Rs1.27bn was raised, comprising of Rs930.52 million in competitive bids and the remaining Rs340.69m in non-competitive bids.
The cut-off price was Rs83.30, which is a rental yield of 20.1031%.
For the GIS VRR, a total amount of Rs44.33bn was picked, with Rs225.27m raised through the 3-year GIS FRR and Rs44.1bn through the sale of the 5-year GIS FRR.
Of the total Rs44.3bn, Rs44.12bn was accepted through competitive bids, while the remaining Rs150.58m comprised non-competitive bids accepted for the respective category of GIS bonds.
The cut-off price was Rs99.95 for GIS 03-Year VRR and Rs98.105 for GIS 05-Year VRR.
Meanwhile, bids were rejected for GIS FRR.
PSX Auction Summary
Competitive
Non-Competitive
Total
1-Year Discounted IJARAH Sukuk
930.515
340.690
1,271.210
GIS 03-Year VRR
149.700
75.570
225.270
GIS 05-Year VRR
44,027.200
75.010
44,102.210
Net Total
45,107.420
491.270
45,598.690
Amount in PKR Million
The breakup of the target for today's auction shows that the aim was to raise Rs30bn through the sale of 1-year GIS FRD, and Rs60bn each for GIS VRR and GIS FRR.
