Karachi: The inaugural primary market auction of the Government of Pakistan’s one-year Ijarah Sukuk at the Pakistan Stock Exchange (PSX) has achieved remarkable success, marking a historic milestone for the country. This groundbreaking auction, held on December 8, 2023, utilized the Exchange’s state-of-the-art, fully automated system, with settlement and custodial services facilitated by key market entities, including NCCPL and CDC.
The auction surpassed expectations, with bids accepted amounting to Rs 36.068 billion against the Rs 30 billion Sukuk target. The total bids received reached an impressive Rs 481.307 billion, involving 172 participating investors. A diverse investor base for the Government of Pakistan (GoP) was established, with 132 successful bidders. The subscription amount totaled Rs 30.191 billion, featuring a cut-off rental rate of 19.5199% and a price of Rs 83.7055.
Caretaker Federal Minister for Finance, Revenue & Economic Affairs, Dr. Shamshad Akhtar, expressed pride in this significant achievement, emphasizing its long-awaited realization. Acknowledging the benefits to the GoP, including a diversified investor base and new investment opportunities, Dr. Akhtar commended the Securities and Exchange Commission of Pakistan (SECP), PSX, NCCPL, and CDC for this monumental development.
Mr. Akif Saeed, Chairman of SECP, highlighted the importance of government securities for capital market development and urged market participants to focus on marketing efforts to attract new investors.
Farrukh H. Khan, MD & CEO of PSX, expressed immense pride in the successful primary market auction, terming it a watershed moment for both the capital markets and Pakistan’s economy. With competitive cut-off rental rates and significant oversubscription, Khan extended appreciation to market participants, including NCCPL and CDC, as well as the Ministry of Finance and SECP for their guidance and support in executing this historic auction.
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