KARACHI: The government raised Rs. 294.7 billion through a hybrid Sukuk auction at the Pakistan Stock Exchange (PSX). However, the amount fell short of its combined pre-auction target of Rs. 350 billion, despite receiving bids worth Rs. 796.05 billion.
According to PSX auction results, the government raised Rs. 217.95 billion through 10-year variable rental rate Sukuk. It also raised Rs. 76.75 billion through three-month, six-month and one-year fixed-rate discounted Sukuk.
The 10-year Sukuk attracted bids worth Rs. 525.50 billion against a target of Rs. 200 billion. The government accepted Rs. 216.80 billion in competitive bids and Rs. 1.15 billion in non-competitive bids, bringing total acceptance to Rs. 217.95 billion.
The instrument recorded a cut-off yield of 12.3924%. Its cut-off price stood at Rs. 98.4505 for every Rs. 100 of face value.
The Sukuk carries a reference rate of 12.1179%, based on the latest six-month Treasury bill weighted average yield. The government added a spread of 0.2745 percentage points. It also set the first-period coupon rate at 12.1179%. The instrument will mature on October 15, 2036.
Meanwhile, the government raised Rs. 76.75 billion through fixed-rate discounted Sukuk against a pre-auction target of Rs150 billion. The auction attracted bids worth Rs. 270.55 billion in realised value.
The government accepted Rs. 72.40 billion in competitive bids and Rs. 4.36 billion in non-competitive bids. Three-month Sukuk accounted for the largest share, bringing in Rs. 55.99 billion. One-year Sukuk contributed Rs. 18.45 billion, while six-month Sukuk added Rs. 2.31 billion.
The three-month Sukuk recorded a cut-off yield of 11.9499% and a cut-off price of Rs. 97.3235 per Rs. 100 of face value. The six-month instrument posted a cut-off yield of 12.2502% and a cut-off price of Rs. 94.2433. Meanwhile, the one-year Sukuk recorded a cut-off yield of 12.4999% and a cut-off price of Rs. 88.9160.
The three fixed-rate instruments will mature on January 7, April 15 and October 14, 2027, respectively.
Across both auctions, the government accepted Rs. 289.20 billion in competitive bids and Rs. 5.50 billion in non-competitive bids. The accepted Sukuk had a combined face value of Rs. 301.95 billion, compared with a realised amount of Rs. 294.70 billion.
The 10-year variable rental rate Sukuk accounted for around 74% of the total funds raised. The three fixed-rate instruments contributed the remaining 26%.
The PSX conducted the auction on October 14, 2026. The government scheduled the issuance and settlement for October 15, 2026.
