KARACHI: The federal government has borrowed some Rs 5.5 billion through the auction for first ever 1-year tenure Ijarah Sukuk.
Recently, the Ministry of Finance announced the auction for first-ever 1-year tenure sovereign domestic Ijarah Sukuk and the first auction was held on Feb 16, conducted by State Bank of Pakistan (SBP). The Sukuk is also approved by the Shariah Advisory Committee of the SBP to ensure its adherence to Islamic law.
According to State Bank, overall received bids amounted to Rs 10.663 billion for the sale of Variable Rental Rate (VRR) Government of Pakistan Ijara Sukuk (GIS) 1-Year, GIS 3-Year and GIS 5-Year. This included Rs 10.622 billion worth bids for the sale of GIS 1-year, Rs 28.10 million for 3-year and Rs 13.5 million for 5-year Sukuk.
Cumulatively, the federal government raised Rs 5.801 billion against the sale of VRR Ijara Sukuk. Some Rs 5.515 billion were borrowed through the sale of GIS 1-year against the initial target Rs 30 billion set by the ministry of finance. Similarly, Rs 28.1 million were borrowed against the sale of 3-year and Rs 3 million of 5-year Ijara Sukuk. In addition, some Rs 255 million non-competitive bids were also accepted in the auction for GIS VRR.
