SBP raises Rs167.28bn through GIS Auction

November 30, 2023 (MLN): The State Bank of Pakistan (SBP) has successfully raised Rs167.275 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 Rs336.707bn for the GIS VRR with a margin range of -300bps - +104 bps for 1 year, -200 bps - +88bps for 3-year, and -50 - +100bps for 5-year, respectively.

Out of the total bids received, SBP accepted a total of Rs91.226bn from which Rs13.22bn was accepted at a cut-off margin of -100bps for 1 year, Rs49.45bn was accepted at a cut-off margin of -21bps for 3 years, and Rs27.856bn was accepted at a cut-off margin of 10bps for 5 years.

The total amount of Rs90.526bn raised through GIS VRR comprises of Rs80.261bn worth of competitive bids and the remaining Rs10.265bn of non-competitive bids.

The SBP also conducted an auction for the GIS FRR and received bids worth Rs209.173bn with a fixed rental range of 15.5-20% for 3 years, and 14.5-16.87% for 5 years.

Out of this, the SBP accepted Rs76.747bn at a cut-off rental rate of 16.19% for 3 and 15.75% for 5 years, respectively.

The total accepted sum of Rs76.749bn, comprises of Rs70.057bn raised through competitive bids and Rs6.692bn raised through non competitive bids.

The target of SBP for the auction today was to raise a total of Rs150bn, out of which Rs70bn was to be raised through GIS FRR and the remaining Rs80bn through GIS VRR.

It is important to mention that  the central bank issued fresh bonds with tenors of 1, 3, and 5 years for both GIS VRR  and GIS FRR.

The settlement date for the successful bids is December 04, 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 Pakistan Sports Complex.

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