Govt accepts bids worth Rs23bn in Bai Muajjal purchase of GIS

The government accepted GOP Ijara Sukuk bids with a face value of Rs22.85bn in its 27 October Bai Muajjal auction, Mettis Global reported, citing the State Bank of Pakistan. The accepted face value was well below the Rs170.29bn offered by participants. With deferred payment included, the accepted transaction amounted to Rs34.63bn.

The securities have a tenor of 1,096 days, and the deferred price at the cut-off was 151.55. Offers were submitted at prices from 150.63 to 155.66, while no non-competitive bids were received or accepted. Sukuk delivery was scheduled for 28 October, the day after the auction.

The auction concerns government borrowing through Islamic securities and records the level of investor offers against the amount accepted. Its results are relevant to readers tracking public financing and demand for government sukuk, rather than to any specific listed company.