SBP raises Rs155.88bn through Sukuk Auction

June 23, 2023 (MLN): The State Bank of Pakistan (SBP) has successfully raised Rs155.887 billion through the sale of 1-year, 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 Rs250.911bn for the GIS VRR with a price range of -50 basis points (bps) to 100bps for 1-year, 89bps to 139bps for 3-year, and 95bps to 185bps for 5-year, respectively.

Out of the total bids received, SBP accepted a total of Rs80.187bn from which Rs55.187bn was accepted at a cut-off margin of 65bps for 1 year, and Rs25bn was accepted at a cut-off margin of 95bps for 5 years.

Meanwhile, no bids were accepted for the 3-year GIS VRR.

The SBP also conducted an auction for the GIS FRR and received bids worth Rs200.9bn with a fixed rental range of 21.29% for 1 year, and 18.49% for 3 years.

Out of this, the SBP accepted Rs75.7bn at a cut-off rental rate of 21.29% for 1 year and 18.49% for 3 years.

No bids were received or accepted for the GIS FRR with a fixed rental range of 5 years.

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