The government has raised Rs87.79 billion from the sale of various types of Ijara Sukuk (GIS) bonds in a second auction conducted at the Pakistan Stock Exchange (PSX).
The amount raised was slightly lower than the target of Rs100 billion set by the government.
The auction received bids worth Rs618.15 billion, indicating a strong demand for government debt instruments. The bids were divided into three categories: GIS Fixed Rental Rate (FRR), GIS Variable Rental Rate (VRR), and GIS Fixed Rental Discount (FRD).
The highest amount raised was from the GIS VRR category, which generated Rs57.88 billion from the sale of 3-year and 5-year bonds. The margin range for these bonds was 15bps and 28bps respectively.
The second highest amount raised was from the GIS FRR category, which fetched Rs22.89 billion from the sale of 3-year and 5-year bonds1. The cutoff rental for these bonds was 16.05% and 15.49% respectively.
The lowest amount raised was from the GIS FRD category, which brought in Rs6.42 billion from the sale of 1-year bonds. The cutoff price for these bonds was Rs83.7198.
The PSX was authorized by the Ministry of Finance to conduct the primary market issuance of government debt securities in November 2023, as part of the reforms to diversify the investor base and enhance the liquidity of the debt market.
The first auction held by the PSX in December 2023 witnessed an overwhelming response as it received bids worth Rs478.78 billion.
