October 02, 2024 (MLN): The government is targeting to raise Rs875 billion during the next three months (October-December) 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 Rs200bn through the sale of Short Term Sukuk (1-year Islamic Bonds) during this period.
Additionally, PSX will auction Fixed Rental Rate (FRR) and Variable Rental Rate (VRR) bonds to raise a total of Rs675bn.
The tenor-wise targets for fixed Sukuk are set at Rs100bn each for 3-year, 5-year, and 10-year maturities.
Similarly, the government will raise Rs100bn for various tenors in the variable rental rate Sukuk.
It is worth noting that VRR shall be a Fresh Issuance and the benchmark rate (6-month weighted average T-Bill Yield) of the October 3, 24 auction shall be applicable.
The auction calendar released by the local bourse reveals that the first GIS auction is scheduled for October 14, during which the domestic equity market aims to raise a total of Rs200bn.
Likewise, PSX will host one auction in November, with a target of Rs275bn through Islamic bonds of different tenures.
Of the total amount to be raised, Rs50bn will be obtained through short-term GIS, while Rs75bn and Rs150bn will be raised through fixed-rate and floating-rate GIS, respectively.
Moving forward, December will also witness only one auction, on December 23 to borrow Rs400bn in total
The government plans to raise this amount by selling Rs100bn worth of short-term GIS, and 150bn each through fixed and floating GIS.
| GIS Type | Auction Date | Settlement Date | Tenor Wise Targets (PKR in Billion) | Target Auction Size 1 (PKR in Billion) | |||
| 1 year | 3 year | 5 year | 10 year | ||||
| Short Term Sukuk [12 Months] | 14-Oct-24 | 15-Oct-24 | 50 | – | – | – | 50 |
| 11-Nov-24 | 12-Nov-24 | 50 | – | – | – | 50 | |
| 23-Dec-24 | 24-Dec-24 | 100 | – | – | – | 100 | |
| Fixed Rental Rate | 14-Oct-24 | 15-Oct-24 | – | 25 | 25 | 25 | 75 |
| 11-Nov-24 | 12-Nov-24 | – | 25 | 25 | 25 | 75 | |
| 23-Dec-24 | 24-Dec-24 | – | 50 | 50 | 50 | 150 | |
| Variable Rental Rate | 14-Oct-24 | 15-Oct-24 | – | 25 | 25 | 25 | 75 |
| 11-Nov-24 | 12-Nov-24 | – | 50 | 50 | 50 | 150 | |
| 23-Dec-24 | 24-Dec-24 | – | 50 | 50 | 50 | 150 | |
Copyright Mettis Link News
Posted on: 2024-10-02T15:45:29+05:00
