November 29, 2023 (MLN): The government is targeting to raise Rs150 billion during the next three months (November-January) of FY24, through the auction of GOP Ijara Sukuk (GIS).
The auction calendar released by the State Bank of Pakistan (SBP) reveals that only one auction will be held during this three-month period, and that is scheduled for November 30.
In this respective auction, the central bank has a target to raise Rs70bn through the sale of GIS Fixed Rental Rate (FRR), while the remaining Rs80bn will be raised through GIS Variable Rental Rate (VRR).
The breakup shows that under the target of Rs70bn for GIS FRR, Rs30bn is targeted to be raised through the 3-year bond, while Rs40bn through the sale of 5-year GIS FRR.
Under the GIS VRR, the respective targets for the bonds are; Rs10bn for 1-year, Rs30bn for 3-year tenure and Rs40bn for 5-year GIS VRR.
It is important to mention that for the auction dated November 30, the central bank will issue fresh bonds with tenors of 1, 3, and 5 years for both GIS VRR and GIS FRR.
To note, as per the amendments made by the central bank, GIS will now be issued on the identified asset of the Pakistan Sports Board (PSB), which includes Pakistan Sports Complex
The identified asset will be used together with identified, unencumbered, and undisputed land of PSB surrounding the asset.
The complete Structure and Assets described by the central bank are detailed in 'Annexure-A'.
Moreover, as per a notification by the Ministry of Finance, there have been certain amendments introduced with respect to non-competitive bids in GIS auctions.
As per the amendments, individual investors have been removed from the list of entities eligible to submit NCBs (Non-Competitive Bids) in the GIS auction.
Additionally, PDs are required to submit their NCBs with the name/account title of the investor and amount of investment without quoting the margin/rate in the format given in ‘Annexure-B’ (in excel form).
Previously, the specified format for submitting NCBs was outlined in Annexure G.
Copyright Mettis Link News
Posted on: 2023-11-29T11:37:28+05:00
