January 23, 2023 (MLN): The Pakistan Stock Exchange (PSX) conducted an auction today for the sale of Government of Pakistan Ijara Sukuk (GIS) bonds, raising Rs87.79 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 Rs349.47bn, Rs166.948bn, and Rs101.736bn for the sale of GIS FRD, GIS FRR and GIS VRR, respectively.
Out of the total bids received for the 1-year GIS FRD, a sum of Rs6.42bn was raised, comprising of Rs5.672bn in competitive bids and the remaining Rs746.647m in non-competitive bids.
For the GIS FRR, a total amount of Rs22.89bn was raised, with Rs321.355m generated through the 3-year GIS FRR and Rs22.569bn through the sale of the 5-year GIS FRR.
Competitive bids acceptance reached Rs22.275bn and non-competitive bids were accepted at Rs615.52m for the respected category of GIS bonds.
Under the auction of GIS-VRR, the government accepted competitive bids worth Rs27.226bn and non-competitive bids amounting to Rs654.775m, taking the total amount raised for the GIS VRR to Rs57.88bn.
The cutoff price for the 1-year GIS FRD stood at Rs83.7198.
Meanwhile, the cutoff rental for the 3-year and 5-year GIS FRR was 16.05% and 15.49% respectively.
Moving forward through the results, the margin range for the 3-year and 5-year GIS VRR was recorded at 15bps and 28bps respectively.
The breakup of the target for today's auction shows that the aim was to raise Rs40bn through the sale of 1-year GIS FRD, and Rs30bn each for GIS VRR and GIS FRR.
PSX Auction Summary
| Competitive | Non-Competitive | Total | |
|---|---|---|---|
| 1-Year Discounted IJARAH Sukuk | 5,672.36 | 746.635 | 6,419 |
| GIS 03-Year FRR | 20 | 301.355 | 321.36 |
| GIS 05-Year FRR | 22,255 | 314.16 | 22,569.16 |
| GIS 03-Year VRR | 14,702 | 226.115 | 14,928.12 |
| GIS 05-Year VRR | 42,523.50 | 428.66 | 42,952.16 |
| Net Total | 85,172.86 | 2,016.93 | 87,189.79 |
Amount in PKR Million
It is pertinent to note that this is the second time that the domestic equity market has conducted the auction of governmental debt instruments.
In the inaugural auction held on December 09, 2023, the local bourse witnessed an overwhelming response as it received bids worth Rs478.78bn.
To recall, the Ministry of Finance (MoF) approved some amendments to the rules governing the issuance, registration, trading, and transfer of GDS through the Capital Market Infrastructure Institutions (CMIIs) such as the Pakistan Stock Exchange (PSX), National Clearing and Settlement Company of Pakistan (NCCPL), and Central Depository Company of Pakistan (CDC).
As per the new arrangement, PSX was authorized to conduct the primary market issuance of government debt Securities.
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Posted on: 2024-01-24T00:36:24+05:00
