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KARACHI: The government on Thursday raised Rs80.4 billion through sale of fixed rental rate three-year ijara sukuk (Islamic bonds).
The bonds were raised at a rate lower than the Pakistan Investment Bonds (PIBs), but the amount offered showed that the primary dealers were willing to invest more than 100 per cent of the amount raised in this auction.
The bids offered were Rs198.7bn for the three-year tenor while the cut-off rate was 5.59pc. The three-year PIBs sold this week offered a cut-off yield of 6.32pc for an amount of Rs37.2bn.
Published in Dawn, March 25th, 2016
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Mar 25, 2016 12:53pm
State Bank of Pakistan is taking unfair advantage of scarcity of Sahria-compliant investment opportunities available to Islamic Financial Institutions. With the existing SBP Policy Rate at 6.0%, KIBOR for 3-years at 6.31% and the latest cut-off rate for 3-year PIBs at 6.32%, the new Sukuk are being offered at a rate (5.59%) which is one basis point less than the SBP Policy Rate even. This is clear cut exploitation, which in itself is "exploitative" and un-Islamic.
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