Govt picks Rs99.19bn through Sukuk auction via PSX against a target of Rs100bn

April 25, 2024 (MLN): The Pakistan Stock Exchange (PSX) conducted an auction today for the sale of Government of Pakistan Ijara Sukuk (GIS) bonds, raising Rs99.19 billion against the Rs100bn 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 Rs218.37bn, out of which Rs106.46bn were received for GIS FRD, Rs110.75bn for GIS VRR and Rs1.16bn for GIS FRR, respectively.

From the aggregate bids received for the 1-year GIS FRD, a sum of Rs33.04bn was accepted, comprising Rs32.53bn in competitive bids and the remaining Rs519.46m in non-competitive bids.

The cut-off price for the respective bond stood at Rs83.37, which is a rental yield of 19.999%.

For the GIS VRR, a total amount of Rs65.09bn was picked by the government, with Rs273.35m raised through the 3-year GIS VRR and Rs64.81bn through the sale of 5-year GIS VRR.

Of the total Rs65.09bn, Rs64.72bn was accepted through competitive bids, while the remaining Rs367.76m comprised non-competitive bids for the respective category of GIS bonds.

The cut-off price was Rs100.08 for GIS 03-Year VRR and Rs98.51 for GIS 05-Year VRR.

Meanwhile, a total amount of Rs1.06bn For the GIS FRR, out of which Rs151.61m was raised through the 3-year GIS VRR and Rs905.59m 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 Rs100.3552 and Rs99.961, respectively.

The breakup of the target for today's auction shows that the aim was to raise Rs20bn through the sale of 1-year GIS FRD, and Rs40bn each through GIS VRR and GIS FRR.

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