Govt to auction Rs250 billion hybrid Sukuk through PSX on July 8

The Government of Pakistan will hold the 11th GoP Hybrid Sukuk auction through the Pakistan Stock Exchange (PSX) Auction System on Wednesday, July 8, 2026, with a combined target of Rs250 billion.

According to a PSX notice issued to market participants, the auction will include a fresh issue of 1-year fixed rate discounted GoP Hybrid Sukuk and the re-opening of 10-year variable rental rate GoP Hybrid Sukuk.

The auction will run from 10:00 am to 12:00 pm and will include both competitive and non-competitive bidding.

The settlement date has been fixed for Thursday, July 9, 2026.

The issuer is Pakistan Domestic Sukuk Company Limited (PDSCL), a wholly owned subsidiary of the Ministry of Finance.

The hybrid Sukuk structure will comprise an Ijarah Sale and Lease Back (SLB) transaction and a Commodity Murabaha transaction.

Under the structure, 55% of the Sukuk proceeds will be allocated to Ijarah SLB and 45% to Commodity Murabaha.

The 1-year fixed rate discounted GoP Hybrid Sukuk will be a fresh issue with a target size of Rs150 billion.

Its issue date is July 9, 2026, and its maturity date is July 8, 2027. The tenor of the instrument is 364 days.

The 10-year variable rental rate GoP Hybrid Sukuk will be a re-opening of the issue dated April 16, 2026.

The re-opening has a target size of Rs100 billion, with settlement on July 9, 2026 and maturity on April 16, 2036.

For the 10-year variable rental rate Sukuk, accrued days have been calculated at 84.

The notice states that the 10-year instrument carries a rental rate of 11.7185%, with price premium of Rs134.8430 per Rs5,000 face value.

The applicable benchmark rate for the first period is 11.3685%, while the bid spread for the 10-year listed variable rental rate GoP Hybrid Sukuk is +35 basis points.

The minimum bid size for all instruments has been set at Rs5,000 and multiples thereof.

There is no maximum limit for competitive bids.

For non-competitive bids, the maximum limit per investor is 0.25% of the pre-auction target amount or Rs500 million, whichever is lower.

All Broker Clearing Members, Non-Broker Clearing Members and Professional Clearing Members of the National Clearing Company of Pakistan Limited are eligible to participate in the auction for their proprietary accounts, investors and funds under management.

Eligible investors include existing investors with CDC sub-accounts or CDC Investor Account Services accounts, Roshan Digital Account holders through CDC Investor Account Services and new investors participating through the CDC facilitation account service.

The notice also states that participants eligible for an advance amount under NCCPL regulations must provide instrument-wise 10% advance committed amount.

Such participants must communicate their expression of interest between July 3 and July 6, from 2:00 pm to 4:00 pm.

Advance cash amounts committed to NCCPL must be deposited through the NCSS terminal on July 7 between 9:00 am and 11:00 am. Failure to do so will disable the participant for the bidding session.

Participants using the auction system must map instruments and assign cash, where applicable, between July 3 and July 6.

The final collection of settlement amount will be carried out on July 9 from 9:00am to 12:00pm.

The notice states that the Sukuk will be listed and tradable on PSX and will be 100% SLR eligible under the Government of Pakistan Sukuk Rules, 2008, as amended in 2023.

Joint Financial Advisors and Shariah Advisor to the issue are Meezan Bank Limited, Dubai Islamic Bank (Pakistan) Limited, Bank Islami Pakistan Limited and Bank Alfalah Limited.

NCCPL will act as the paying agent, while Central Depository Company Share Registrar Services Limited will act as registrar.