Govt picks Rs93.61bn through Sukuk auction via PSX against a target of Rs50bn

March 14, 2024 (MLN): The Pakistan Stock Exchange (PSX) conducted an auction today for the sale of Government of Pakistan Ijara Sukuk (GIS) bonds, raising Rs93.61bn 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 Rs150.53bn, out of which Rs23.68bn were received for GIS FRD, Rs123.8bn for GIS VRR and Rs3.05bn for GIS FRR, respectively.

From the aggregate bids received for the 1-year GIS FRD, a sum of Rs13.49bn was accepted, comprising of Rs13.17bn in competitive bids and the remaining Rs321.56m in non-competitive bids.

The cut-off price for the respective bond stood at Rs83.3, which is a rental yield of 20.1%.

For the GIS VRR, a total amount of Rs78.391bn was picked by the government, with Rs58.5m raised through the 3-year GIS VRR and Rs78.332bn through the sale of 5-year GIS VRR.

Of the total Rs78.391bn, Rs78.289bn was accepted through competitive bids, while the remaining Rs102.2m comprised non-competitive bids accepted for the respective category of GIS bonds.

The cut-off price was Rs99.9 for GIS 03-Year VRR and Rs98.11 for GIS 05-Year VRR.

Meanwhile, a total amount of Rs1.73bn For the GIS FRR, out of which Rs80m was raised through the 3-year GIS VRR and Rs1.65bn through the successful auction sale of 5-year GIS VRR.

Both the 3-year and 5-year bonds were sold at a cut-off price of Rs100.05 and Rs99.9121, respectively.

PSX Auction Summary

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 Rs20bn through GIS FRR.

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