SBP raises Rs115bn through GIS Auction

December 22, 2023 (MLN): The State Bank of Pakistan (SBP) has successfully raised Rs115.01 billion through the sale of 3-year, and 5-year GOP Ijara Sukuk (GIS) Variable Rental Rate (VRR) and GIS Fixed Rental Rate (FRR) in an auction held on Thursday.

According to the central bank, the auction received bids worth Rs162.308bn for the GIS VRR with a margin price of 101.75 – 97.95 for the 3-year bond and 101.5 – 97.1 for the 5-year one.

Out of the total bids received, SBP accepted a total of Rs104.35bn from which Rs32.237bn was accepted at a margin price of 99.08 for 3 years Sukuk and Rs72.118bn was accepted at a margin price of 98.76 for 5 years.

The total amount of Rs102.808bn raised through GIS VRR comprises of Rs80.261bn worth of competitive bids and the remaining Rs1.546bn of non-competitive bids.

The SBP also conducted an auction for the GIS FRR and received bids worth Rs71.361bn with a price range of 102-90 for 3 years, and 100.0022-90 for 5 years.

Out of this, the SBP accepted Rs10.746bn at a cut-off rental price of 100.284 for 3 and 100.0022 for 5 years, respectively.

The total accepted sum for GIS FRR comprises of Rs10.091bn raised through competitive bids and Rs655 million raised through noncompetitive bids.

The target of SBP for the auction today was to raise a total of Rs110bn, out of which Rs50bn was to be raised through GIS FRR and the remaining Rs60bn through GIS VRR.

The settlement date for the successful bids is December 26, 2023.

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 the Pakistan Sports Complex.

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