Key Takeaways
- The government raised Rs. 170.98 billion through a recent hybrid Sukuk auction.
- Investor demand was strong, with total bids exceeding Rs. 756.93 billion.
- Fixed rate and variable rental rate instruments were both accepted.
The government successfully conducted a Hybrid Sukuk auction on August 5, raising Rs. 170.98 billion, surpassing its pre-auction target of Rs. 125 billion.
Total bids for the auction amounted to more than Rs. 756.93 billion, indicating strong investor interest across both fixed rate and variable rental rate instruments.
For the fixed rate discounted Sukuk, the government accepted Rs. 108.23 billion in face value, including competitive bids of Rs. 57.44 billion for one-year tenor at a cut-off yield of 11.84 percent, Rs. 27.45 billion for three-month tenor at 11.4353 percent, and Rs. 20.34 billion for six-month tenor at 11.6899 percent.
Additionally, noncompetitive bids of Rs. 2.99 billion were accepted, bringing the total acceptance to Rs. 108.23 billion.
The reopening of the 10-year Variable Rental Rate (VRR) Sukuk saw strong investor interest with bids totaling Rs. 412.02 billion against a pre-auction target of Rs. 50 billion, and the government accepted Rs. 62.75 billion in face value.
Of this, Rs. 62.5 billion was through competitive bids at a cut-off yield of 11.5704 percent, with an additional Rs. 250 million through noncompetitive bids.
Despite the total accepted face value standing at Rs. 170.98 billion, the government realized only Rs. 162.56 billion from the auction due to issuance below face value for fixed rate discounted Sukuk.
Realized proceeds were Rs. 100.19 billion from the fixed rate instruments and Rs. 62.37 billion from VRR Sukuk.
