SBP's Bai Muajjal auction for GIS receives Rs24.7bn in bids

July 10, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Tuesday for the outright purchase of Government of Pakistan Ijara Sukuk (GIS) on a deferred payment basis (Bai Muajjal).

The auction was of GIS Variable Rental Rate (VRR)-35, in which the total amount offered was Rs24.7 billion, which reflects the total value of GIS that participants were willing to sell.

Meanwhile, the price at which they were prepared to sell on a deferred basis to the government stood in the range of Rs175.59 to Rs176.40.

However, the auction concluded with the government rejecting all of the bids, which means that no Sukuk was purchased at the proposed price.

To recall, the Ministry of Finance (MoF) approved some amendments to the rules governing the issuance, registration, trading, and transfer of GDS through the Capital Market Infrastructure Institutions (CMIIs) such as the Pakistan Stock Exchange (PSX), National Clearing and Settlement Company of Pakistan (NCCPL), and Central Depository Company of Pakistan (CDC).

As per the new arrangement, PSX was authorized to conduct the primary market issuance of government debt Securities, starting in December.

PSX held the inaugural auction of the 1-year GIS on December 09, 2023, and witnessed an overwhelming response, receiving bids worth Rs478.78bn.

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