Govt raises Rs331.7 billion via Sukuk auction on PSX, exceeding target

The government raised Rs331.7 billion through an auction of Sukuk bonds on the Pakistan Stock Exchange (PSX), exceeding its target of Rs300 billion for the 15th Government of Pakistan Ijarah Sukuk (GIS) auction. 

According to a PSX notification, the auction attracted substantial interest, with bids reaching Rs 875.22 billion.

The cut-off yields for the fixed-rate discounted (FRD) and fixed rental rate (FRR) Sukuk saw a marked decrease. The one-year FRD yield dropped 76 basis points to 10.99%. In the FRR category, cut-off yields fell to 11.5% for the three-year (-50bps), 12.1% for the five-year (-43bps), and 11.7% for the 10-year (-104bps) Sukuk bonds.

For variable rental rate (VRR) Sukuk, the three-year cut-off yield was set at 13.2549% (90bps below the reference rate), the five-year at 13.3959% (-76bps), and the 10-year at 13.8227% (-33bps), with a reference rate of 14.1545%.

The auction saw bids of Rs222.71 billion for the FRD Sukuk, Rs548.7 billion for the VRR, and Rs103.81 billion for the FRR, reflecting strong demand across all categories and boosting the government’s fundraising efforts beyond expectations.