The government has raised Rs114.347 billion through the third auction of its Hybrid Sukuk.
The auction, conducted through the Pakistan Stock Exchange (PSX) on behalf of the Ministry of Finance (MoF), attracted robust participation, with total bids reaching Rs354.395 billion (face value), translating into a realised value of Rs344.716 billion, as per a statement on Thursday.
Meezan Bank Limited acted as the Lead Joint Financial Advisor (JFA) for the transaction.
Meanwhile, according to the auction results, the cut-off yield for the one-year fixed-rate (discounted) Sukuk was set at 12%, up 20 basis points from the previous level.
“For the longer tenor, the 10-year Variable Rental Rate (VRR) Sukuk was priced at 11.7568%, offering a spread of 38.83 bps over the reference rate of 11.3685%.”
Market participants attributed the strong response to improving liquidity conditions and sustained appetite among institutional investors for Islamic investment avenues, particularly sovereign Sukuk offerings with diversified return structures, the statement added.
The Hybrid Sukuk, which combines fixed and floating rate features, is designed to broaden the government’s Shariah-compliant borrowing base while providing flexibility to investors with varying risk-return preferences.
In April, the government completed the inaugural issuance of its Hybrid Sukuk, raising over Rs109 billion through an oversubscribed auction.
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