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Govt targets to raise Rs550bn through GIS auction via PSX in 2Q2024

Govt picks Rs106.25bn through Sukuk auction via PSX
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April 18, 2024 (MLN): The government is targeting to raise Rs550 billion during the next three months (April-June) of 2024, through the auction of GOP Ijara Sukuk (GIS) that will be conducted by the Pakistan Stock Exchange Limited (PSX).

The aim is to raise a total of Rs110bn through the sale of 1-year Islamic Bonds during this quarter.

Additionally, PSX will auction 3-year and 5-year fixed-rate Islamic bonds to raise a total of Rs120bn.

An equivalent amount of Rs120bn is aimed to be raised by selling GIS-floating rate bonds with tenures of 3 and 5 years.

The auction calendar released by the local bourse reveals that in addition to the auction held on April 08, another GIS auction is scheduled for April 25, during which the domestic equity market aims to raise a total of Rs100bn.

According to the breakdown of the total amount, PSX plans to raise Rs20bn through GIS (short term), Rs40bn through GIS (Fixed Rate), and Rs40bn through the sale of GIS (floating rate).

Likewise, PSX will host two auctions in May, one to be held on May 09 and the other one on May 23, with an equal target of Rs100bn through Islamic bonds of different tenures on both dates.

Of the total amount to be raised in each auction, Rs20bn will be obtained through short-term GIS, while Rs40bn each will be raised through fixed-rate and floating-rate GIS

Moving forward, June will also witness two auctions, one on June 06 to borrow Rs100bn and the final one on June 20 with an equivalent target.

The government plans to raise this amount by selling Rs20bn worth of short-term GIS, and 40bn each through fixed and floating GIS in both auctions separately.

Auction Calendar of GIS Auction through PSX
GIS [Short Term: 12 Months]
Auction Date Settlement Date Target Auction Size (PKR in Billion)
08-Apr-2024 09-Apr-2024 10
25-Apr-2024 26-Apr-2024 20
09-May-2024 10-May-2024 20
23-May-2024 24-May-2024 20
06-Jun-2024 07-Jun-2024 20
20-Jun-2024 21-Jun-2024 20
Total   110
GIS [Fixed Rate]
Auction Date Settlement Date Tenor Wise Targets  Targets
    3 years 5 years Total Target Auction Size
08-Apr-2024 09-Apr-2024 10 10 20
25-Apr-2024 26-Apr-2024 20 20 40
09-May-2024 10-May-2024 20 20 40
23-May-2024 24-May-2024 20 20 40
06-Jun-2024 07-Jun-2024 20 20 40
20-Jun-2024 21-Jun-2024 20 20 40
Total   110 110 220
GIS [Floating Rate]
Auction Date Settlement Date Tenor Wise Targets  Targets
    3 years 5 years Total Target Auction Size
08-Apr-2024 09-Apr-2024 10 10 20
25-Apr-2024 26-Apr-2024 20 20 40
09-May-2024 10-May-2024 20 20 40
23-May-2024 24-May-2024 20 20 40
06-Jun-2024 07-Jun-2024 20 20 40
20-Jun-2024 21-Jun-2024 20 20 40
Total   110 110 220

It is important to highlight that the local bourse conducted its inaugural auction for the sale of GIS on December 09, 2023, experiencing an overwhelmingly positive response with bids totaling Rs478.78bn.

However, despite an impressive response operational challenges hampered brokerage investors.

Copyright Mettis Link News

Posted on: 2024-04-18T12:56:25+05:00