SBP raises Rs297bn through Sukuk Auction

October 05, 2023 (MLN): The State Bank of Pakistan (SBP) has successfully raised Rs297.073 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 Rs313.452bn for the GIS VRR with a price range of -100-90 for 1 year, 101.545 - 99.8 for 3-year, and 101.85 - 99.73 for 5-year, respectively.

Out of the total bids received, SBP accepted a total of Rs83.624bn from which Rs37.548bn was accepted at a cut-off margin of -36bps for 1 year, Rs19.705bn was accepted at a cut-off price of 101.0415 for 3 years, and Rs26.655bn was accepted at a cut-off price of 100.3 for 5 years.

The total amount of Rs313.452bn raised through GIS VRR, comprises of Rs83.022bn worth competitive bids and the remaining Rs885 million of non competitive bids.

The SBP also conducted an auction for the GIS FRR and received bids worth Rs498.919bn with a fixed rental range of 21.50-23.49% for 1 year, a price range of 100.0861 - 98.5048 for 3 years, and 100.0338 - 96.3493 for 5 years.

Out of this, the SBP accepted Rs213.449bn at a cut-off rental rate of 22.49% for 1 year and a price range of 98.556 and 100.0338 for 3 and 5 years, respectively.

The total accepted sum of Rs213.449bn, comprises of Rs211.919bn raised through competitive bids and Rs1.53bn raised through non competitive bids.

It is pertinent to note that the target of SBP for the auction today was to raise a total of Rs300bn, out of which Rs120bn was to be raised through GIS FRR and the remaining Rs180bn through GIS VRR.

The settlement date for the successful bids is October 09, 2023.

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