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