PSX secures Rs478.78bn in bids for inaugural 1-year GIS Auction

December 09, 2023 (MLN): For the very first time in history, the Pakistan Stock Exchange Limited (PSX) conducted the auction for the sale of 1-year GoP Ijara Sukuk (GIS) and witnessed an overwhelming response as it received bids worth Rs478.78 billion.

According to the details made available by the local bourse, the bids received for the issuance of 1-year GIS stood with in a rental range of 18.5-32.425.

Out of the total bids received, the total amount accepted stood at Rs36.068bn at a cut-off yield of 19.52%.

The total amount of Rs36.068bn raised through 1-year GIS comprises of Rs34.568bn worth of competitive bids and the remaining Rs1.5bn of non-competitive bids.

It is important to mention that the target for today's auction through PSX was to raise a total of Rs30bn.

The settlement date for the successful bids is December 11, 2023.

To recall, he 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, starting from December.

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