Government Exceeds Auction Target by More Than 100 Percent
The Government of Pakistan raised Rs250.4 billion through its latest Hybrid Sukuk auction.
The auction was conducted through the Pakistan Stock Exchange Auction System.
The amount raised was more than double the combined pre-auction target of Rs125 billion.
Strong participation was recorded in both short-term discounted Sukuk and the 10-year variable rental rate instrument.
The results reflected significant investor demand for government-backed Islamic financing instruments.
Short-Term Sukuk Raise Rs173.1 Billion
The government invited bids for three-month, six-month, and one-year fixed-rate discounted Hybrid Sukuk.
The combined target for these instruments was Rs75 billion.
However, investors submitted bids worth Rs336.98 billion across the three maturities.
The government accepted Rs170.57 billion through competitive bids.
The three-month Sukuk attracted the highest acceptance at Rs80.82 billion.
Its cut-off yield was set at 11.4994 percent.
The one-year instrument raised Rs64.20 billion at a cut-off yield of 11.84 percent.
The six-month Sukuk generated Rs25.55 billion at a cut-off yield of 11.6902 percent.
The government also accepted Rs2.55 billion through non-competitive bids.
This included Rs1.70 billion in three-month Sukuk, Rs305 million in six-month Sukuk, and Rs547 million in one-year Sukuk.
Total acceptance for the fixed-rate discounted Sukuk reached Rs173.12 billion.
The three-month tenor contributed Rs82.51 billion to the final amount.
The six-month tenor raised Rs25.86 billion, while the one-year instrument secured Rs64.75 billion.
Ten-Year Hybrid Sukuk Attracts Rs433 Billion in Bids
The government also auctioned a fresh 10-year variable rental rate Hybrid Sukuk.
The pre-auction target for the long-term instrument was Rs50 billion.
The reference rental rate for the first payment period was fixed at 11.3904 percent.
Investor demand remained exceptionally strong.
The auction received bids worth Rs433.25 billion.
Submitted prices ranged between 95.1725 and 100.
The government accepted Rs77.15 billion through competitive bids.
The cut-off price was set at 98.8919, with a yield of 11.5803 percent.
Another Rs135 million was accepted through non-competitive bids.
The weighted average price for those bids stood at 99.0213.
Total acceptance for the 10-year Sukuk reached Rs77.29 billion.
The amount exceeded the initial target by more than Rs27 billion.
Combined proceeds from both auction categories reached Rs250.4 billion.
The strong response showed continued investor appetite for sovereign Islamic debt instruments.
It also provided the government with additional financing beyond its original borrowing target.
