KARACHI: The State Bank of Pakistan (SBP) has accepted bids worth Rs 37.174 billion in line with the funds-starved federal government’s plan to raise money from the open market through auctioning of 3-year Government of Pakistan Ijara Sukuk.
According to the State Bank, the primary dealers had offered bids worth Rs 57.754 billion in response to its tender for the sale of the three-year Ijara Sukuk. The range of margin over the benchmark for the offered amount was -25.00 to +100.00 basis points.
Of the offered amount, the central bank however, accepted the Rs 37.174 billion bids for the auctioning of Islamic bonds. The Sate Bank said the cut-off margin of +0.00 would be applicable to all the accepted bids with a benchmark of 6-month MTB auction weighted average yield. “Tender for sale of 3-year Government of Pakistan Ijara Sukuk was invited… through designated primary dealers for the Ijara Sukuk from November 5 to November 8,” the bank said.
The bids were opened on November 8. The federal government has a plan to raise Rs 80 billion during the second quarter of current fiscal year through the issuance of long-term Ijara Sukuk. According to industry sources, the government was facing serious financial constraints to meet its soaring current expenditures, owing to a shortfall in its revenue collections.
