SBP Achieves Record Rs115.01 Billion in Successful GIS Auction

In a landmark move, the State Bank of Pakistan (SBP) accomplished a significant financial feat by raising a substantial Rs115.01 billion through the auction of 3-year and 5-year GOP Ijara Sukuk (GIS) Variable Rental Rate (VRR) and GIS Fixed Rental Rate (FRR). The auction, held on Thursday, witnessed robust participation and enthusiastic bidding.

During the auction, bids totaling Rs162.308 billion were submitted for the GIS VRR, with a margin price range of 101.75 to 97.95 for the 3-year bond and 101.5 to 97.1 for the 5-year bond. The SBP, after careful consideration, accepted a total of Rs104.35 billion. Of this, Rs32.237 billion was accepted at a margin price of 99.08 for the 3-year Sukuk, and Rs72.118 billion was accepted at a margin price of 98.76 for the 5-year Sukuk.

The Rs102.808 billion raised through GIS VRR comprises Rs80.261 billion from competitive bids and the remaining Rs1.546 billion from non-competitive bids.

In a parallel auction for GIS FRR, the SBP received bids worth Rs71.361 billion, with a price range of 102-90 for the 3-year tenure and 100.0022-90 for the 5-year tenure. The SBP accepted Rs10.746 billion at a cut-off rental price of 100.284 for 3 years and 100.0022 for 5 years. The accepted sum for GIS FRR includes Rs10.091 billion from competitive bids and Rs655 million from non-competitive bids.

The SBP exceeded its auction target by achieving a total of Rs115.01 billion, surpassing the initial goal of Rs110 billion. The breakdown included Rs50 billion from GIS FRR and Rs60 billion from GIS VRR.

The settlement date for the successful bids is set for December 26, 2023.

It is noteworthy that as per recent amendments by the central bank, GIS will now be issued against the identified assets of the Pakistan Sports Board (PSB), which encompasses the Pakistan Sports Complex.