Investors offer Rs270bn in Sukuk auction, government picks up only Rs38.4bn

Investors submitted bids worth Rs270.05 billion in face value terms during the State Bank of Pakistan's latest auction for Government of Pakistan Ijarah Sukuk (GIS), but the government accepted only Rs38.4bn, with the vast majority of successful bids coming from the longest maturity on offer.

The accepted bids will result in a deferred payment obligation of Rs56.135bn under the Bai Muajjal structure, according to auction results released by the central bank. The sukuk delivery date has been set for June 24, 2026.

Market participation was overwhelmingly concentrated in the 1,096-day GIS FRR-24 issue, which attracted bids worth Rs257.55bn, accounting for more than 95% of the total amount offered. The government accepted Rs30.4bn in face value from this tenor at a cut-off deferred price of 153.23, translating into a Bai Muajjal amount of Rs46.582bn.

The one-year tenor drew offers of Rs5bn, all of which were accepted. The cut-off deferred price was set at 121.82, resulting in a deferred payment value of Rs6.091bn.

Meanwhile, bids worth Rs7.5bn were received for the 183-day tenor. Of that amount, Rs3bn was accepted at a cut-off deferred price of 115.39, generating a Bai Muajjal amount of Rs3.462bn.

Overall, tenders received across the three maturities totalled Rs270.05bn in face value terms, while accepted bids amounted to Rs38.4bn. The auction was conducted through primary dealers for the outright purchase of GIS FRR-24 on a deferred payment basis.