The Government of Pakistan has raised a combined total of two hundred and fifty point four billion rupees in face value through its latest auction of Government of Pakistan Hybrid Sukuks executed via the Pakistan Stock Exchange auction platform. The total fund raising surpassed the pre-auction target of one hundred and twenty-five billion rupees set by debt managers. The auction attracted robust participation from capital market participants, primary dealers, and Islamic financial institutions across both fixed-rate discounted and variable rental rate Shariah-compliant paper offerings.
Within the fixed-rate discounted hybrid sukuk category, the government invited tenders for fresh issues of three-month, six-month, and one-year tenors against a target of seventy-five billion rupees. The discounted paper auction witnessed aggressive bidding, collecting aggregate face value submissions of three hundred and thirty-six point nine eight billion rupees across all three maturities. Total acceptances across this category reached one hundred and seventy-three point one one billion rupees, backed by competitive bids amounting to one hundred and seventy point five six billion rupees.
The three-month discounted paper led competitive acceptances at eighty point eight one billion rupees at a cut-off yield of eleven point forty-nine percent. The one-year paper recorded competitive acceptances of sixty-four point two zero billion rupees at a cut-off yield of eleven point eighty-four percent, while six-month competitive acceptances totaled twenty-five point five five billion rupees at a cut-off yield of eleven point sixty-nine percent. An additional two point five four billion rupees was accepted through non-competitive allocations across the three discounted maturities, bringing cumulative discounted hybrid sukuk acceptances to eighty-two point five one billion rupees for the three-month tenor, sixty-four point seven four billion rupees for the one-year tenor, and twenty-five point eight five billion rupees for the six-month tenor.
The debt auction system also hosted a fresh issue for the ten-year variable rental rate hybrid sukuk against a pre-auction target of fifty billion rupees, with the initial reference rental rate established at eleven point thirty-nine percent. The long-dated floating rate Islamic instrument generated significant investor interest, accumulating overall face value bids of four hundred and thirty-three point two five billion rupees. In response to strong market demand, the government expanded its allocation, accepting seventy-seven point two eight billion rupees in total face value.
The final acceptance for the ten-year variable rental rate paper comprised seventy-seven point one five billion rupees in competitive bids at a cut-off price of ninety-eight point eight nine, representing a cut-off yield of eleven point fifty-eight percent. Non-competitive acceptances contributed an additional one hundred and thirty-five million rupees at a weighted average price of ninety-nine point zero two. The primary market performance underlines growing capital market liquidity and sustained investor appetite for exchange-listed government Islamic securities.
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