Govt raises Rs353bn through Sukuk auction, yields remain flat

December 03, 2024 (MLN): The Pakistan Stock Exchange (PSX) conducted an auction today for the sale of Government of Pakistan Ijara Sukuk (GIS) bonds, raising Rs353.05bn 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 Rs718.9bn, out of which Rs82.16bn were received for GIS FRD, Rs578.71bn for GIS VRR and Rs58.03bn for GIS FRR, respectively.

From the aggregate bids received for the 1-year GIS FRD, a sum of Rs54.23bn was accepted, comprising Rs39.68bn in competitive bids and the remaining Rs14.54bn in non-competitive bids.

The cut-off rental yield stood at 10.999%, unchanged from the last auction.

For the GIS VRR, a total amount of Rs263.15bn was picked by the government, with Rs23.19bn raised through the 3-year GIS VRR, Rs27.58bn through the sale of 5-year GIS VRR and the majority amount worth Rs212.39bn from 10-year GIS VRR.

Of the total Rs263.15bn, Rs257.51bn was accepted through competitive bids, while the remaining Rs5.64bn comprised non-competitive bids accepted for the respective category of GIS bonds.

The cut-off yields for GIS FRR stood at 13.2546% for the 3-year, 13.3946% for the 5-year, and 13.7053% for the 10-year.

Meanwhile, a total amount of Rs35.67bn For the GIS FRR, out of which Rs8.37bn was raised through the 3-year GIS FRR and Rs27.12bn through the successful auction sale of 5-year GIS FRR. Additionally a small sum of Rs175m was raised from 10-year FRR Sukuk.

The cut-off yields for GIS FRR also remained unchanged at 11.5% for the 3-year, 12.1% for the 5-year, and 11.7% for the 10-year.

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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