The Pakistan Stock Exchange (PSX) raised Rs119.68 billion in the 12th auction of Government of Pakistan Ijara Sukuk (GIS) on Thursday, surpassing the Ministry of Finance’s initial target of Rs100 billion.Â
During the auction, the PSX received bids amounting to Rs444.51 billion, distributed among different GIS categories: Rs176.05 billion for GIS Fixed Rental Rate (FRD), Rs136.85 billion for GIS Variable Rental Rate (VRR), and Rs131.61 billion for GIS Floating Rental Rate (FRR).Â
Out of the total bids received, Rs34.47 billion was accepted for the 1-year GIS FRD, with Rs31.78 billion coming from competitive bids and Rs2.7 billion from non-competitive bids.Â
The cut-off price for the 1-year bond was set at Rs86.25, yielding a rental return of 15.99%.
The GIS cut-off rates were notably reduced across various tenures, with the 1-year FRD at 15.99%, down by 123.49 basis points. The 3-year FRR was set at 15.0017%, down by 63.83 basis points, and the 5-year FRR was at 14.38%, down by 61 basis points. For the 3-year VRR, the rate was set at 18.5925%, a reduction of 1.35% from the reference rate, and the 5-year VRR was at 18.8326%, down by 1.11% from the reference rate.Â
