PSX raises Rs202bn in 13th GOP Ijarah Sukuk auction

KARACHI: In the latest auction of the GOP Ijarah Sukuk (GIS) held on September 16, the Pakistan Stock Exchange successfully raised Rs202 billion against a target of Rs250 billion set by the Ministry of Finance. The cut-off rates for various tenures in the auction were as follows:

Fixed rate discounted sukuk (1-year): 15 per cent (a decrease of 99 basis points). Fixed rental rate (FRR) sukuk (3-year): 13.89 per cent (-111.17 basis points); 5-year FRR: 13.845 per cent (-53.5 basis points) and 10-year FRR: 13.0422 per cent (new issue).

Variable rental rate (VRR) sukuk, reference rate: 17.62 per cent; VRR (3-year): 17.32 per cent (30 basis points below the reference rate); VRR (5-year): 17.49 per cent (13 basis points below the reference rate); VRR (10-year): 17.62 per cent (at par with the reference rate, new issue)

Total bids received during the auction amounted to Rs691.25 billion, showing robust investor interest in the Ijarah Sukuk despite market volatility. With this auction, the government continues its effort to meet fiscal targets while providing Sharia-compliant investment avenues.