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Govt picks Rs35.74bn through Sukuk auction via PSX against Rs50bn target

Govt picks Rs35.74bn through Sukuk auction via PSX against Rs50bn target
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March 28, 2024 (MLN): The Pakistan Stock Exchange (PSX) conducted an auction today for the sale of Government of Pakistan Ijara Sukuk (GIS) bonds, raising Rs35.74bn against the Rs50bn target set for GIS Variable Rental Rate (VRR) and GIS Fixed Rental Rate (FRR) and GIS FRD.

According to the details made available by the local bourse, the bids received stood at Rs42.47bn, out of which Rs18.36bn were received for GIS FRD, Rs23.44bn for GIS VRR and Rs673.3m for GIS FRR, respectively.

From the aggregate bids received for the 1-year GIS FRD, a sum of Rs15.95bn was accepted, comprising of Rs15.78bn in competitive bids and the remaining Rs169.54m in non-competitive bids.

The cut-off price for the respective bond stood at Rs83.21, which is a rental yield of 20.24%.

For the GIS VRR, a total amount of Rs19.46bn was picked by the government, with Rs26.5m raised through the 3-year GIS VRR and Rs19.44bn through the sale of 5-year GIS VRR.

Of the total Rs19.46bn, Rs19.44bn was accepted through competitive bids, while the remaining Rs25.65m comprised non-competitive bids accepted for the respective category of GIS bonds.

The cut-off price was Rs99.95 for GIS 03-Year VRR and Rs98.14 for GIS 05-Year VRR.

Furthermore, the government raised Rs329.31m through GIS 03-Year FRR, while the bids were rejected for GIS 05-Year FRR.

The 3-year FRR bond was sold at a cut-off price of Rs100.04 in today's auction.

  Competitive Non-Competitive Total
GIS FRD 15780.9 169.54 15950.44
GIS VRR 19437.53 25.65 19463.18
GIS FRR 263.1 66.21 329.31
Net Total 35481.53 261.4 35742.93

Amount in Rs Million

The breakup of the target for today's auction shows that the aim was to raise Rs10bn through the sale of 1-year GIS FRD, and Rs20bn each for GIS VRR and Rs20bn through GIS FRR.

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Posted on: 2024-03-28T20:21:03+05:00