Govt raises Rs120bn in Hybrid Sukuk auction

Mettis Global reported that the government gathered Rs119.538bn in face value from its newest hybrid sukuk sale, which ran on the PSX Auction System. That total fell short of the Rs300bn goal set ahead of the event. The proceeds were split between two instruments, a fresh fixed-rate discounted issue and a reopened 10-year variable rental rate sukuk.

The fresh discounted issue, spanning 3-month, 6-month and 1-year tenors, attracted Rs71.069bn in total face value bids against a Rs150bn target. Including non-competitive bids, Rs48.388bn was accepted in this segment, led by the 3-month tenor at Rs25.405bn. Competitive cut-off yields climbed with maturity, from 11.9545% for 3 months to 12.4945% for one year.

The 10-year variable rental rate sukuk, reopened for the fifth time after its July 23, 2026 issuance, received Rs517.150bn in total bids, with bid prices spanning 94.3900 to 98.6936. The government accepted Rs71.150bn solely through competitive bids, with the cut-off price set at 98.3229, equal to an 11.6754% yield, and no non-competitive bids were taken. The first-period reference rate was set at 11.3904%.