Home / Brokerage / SBP raises PKR 70 billion through issuance of 3-year Ijara Sukuk – Alfalah Securities Limited

SBP raises PKR 70 billion through issuance of 3-year Ijara Sukuk – Alfalah Securities Limited

Karachi: The State Bank of Pakistan (SBP) has been successful in raising PKR 70 billion, well above the target of PKR 50 billion, through issuing three-year government of Pakistan Ijara Sukuks.

According to Alfalah Securities Limited, the government accepted PKR 70 billion in an auction held on Wednesday by Islamic Financial Institutions who offered PKR 84.17 billion for the Shariah compliant investment and still possesses strong liquidity position.

The issuance of government Ijara Sukuks has enabled Islamic Financial Institutions to shift their funds from conventional financing to sovereign guarantees and lock their capital as much as 83.7% of incremental assets during 1HCY11 at better yields in the long term. Government Ijara Sukuks issued has also kept Highway land along with its overall construction and improvement as collateral to facilitate this issue.

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