Govt raises Rs75bn in Hybrid Sukuk auction

According to Mettis Global, the government collected Rs75.314bn in face value from its newest Hybrid Sukuk (GHS) and Ijarah Sukuk (GIS) sale held on the PSX Auction System. That total stayed under the Rs100bn combined goal set before bidding began.

Fixed rental rate GHS fresh issues of 3-year and 5-year tenors carried coupons of 12.00% and 12.25%, and were offered against a Rs75bn target. Total bids reached Rs233.097bn, comprising Rs128.518bn for the 3-year and Rs104.580bn for the 5-year. Competitive bids supplied Rs75.113bn, most of it in the 3-year tenor. The 3-year cut-off yield stood at 12.7400% on Rs58.363bn, while the 5-year yield was 12.8300% on Rs16.750bn.

Non-competitive bids added Rs0.202bn, taking total acceptance to Rs58.494bn for the 3-year and Rs16.821bn for the 5-year. A separate 10-year zero coupon GoP Ijarah Sukuk (GIS-FRZ) maturing on October 08, 2036, targeted Rs25bn but drew only Rs0.01m in bids at a price of 29.4588. The government rejected every bid and raised nothing through that instrument.