SBP raises Rs94.78bn against a target of Rs160bn through Sukuk Auction

September 19, 2023 (MLN): The State Bank of Pakistan (SBP) has raised Rs94.78 billion against the target of Rs180bn 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 Monday.

It is pertinent to note that the target during the three months (August-October) of FY24, through the auction of GOPIS (VRR) and GOPIS (FRR) is to raise Rs510bn and Rs330bn respectively.

According to the central bank, the auction received bids worth Rs530.93bn for the GIS VRR with a price range of -200 basis points (bps) to 84bps for 1 year, 100-99.856 for 3-year, and 100-99.73 for 5-year, respectively.

Out of the total bids received, SBP accepted a total of Rs84.088bn from which Rs5.788bn was accepted at a cut-off margin of -200 bps for 1 year, Rs2.9bn was accepted at a cut-off price of 99.856 for 3 years, and Rs75.4bn was accepted at a cut-off price of 99.72 for 5 years.

The SBP also conducted an auction for the GIS FRR and received bids worth Rs34.73bn with a fixed rental range of 21.75-24% for 1 year, a price range of 98.8355-95.9 for 3 years, and 16.50-18.79% for 5 years.

Out of this, the SBP accepted Rs10.69bn at a cut-off rental rate of 22.95% for 1 year, 16.50% for 5 years, and a price range of 98.4449 for 3 years.

The settlement date for the successful bids is September 20, 2023.

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