PSX to auction GoP Hybrid, Ijarah Sukuk worth Rs150 billion on August 4

The Pakistan Stock Exchange (PSX) will conduct the primary market auction of the 13th GoP Hybrid Sukuk (GHS) and 37th GoP Ijarah Sukuk (GIS) on Tuesday, August 4, 2026, through the PSX Auction System, according to a notice issued on Monday. 

The auction covers a fresh issue of 3-year and 5-year Fixed Rental Rate (FRR) GoP Hybrid Sukuk, along with a fresh issue of 10-year Fixed Rate Zero Coupon GoP Ijarah Sukuk. The target size is Rs50 billion each for the 3-year, 5-year, and 10-year instruments, bringing the total target to Rs150 billion.

The Hybrid Sukuk structure combines an Ijarah Sale & Lease Back (Ijarah SLB) transaction with a Commodity Murabaha transaction, allocating 55% of proceeds to Ijarah SLB and 45% to Commodity Murabaha. 

The fixed profit rate is set at 11.0000% for the 3-year tenor and 11.5000% for the 5-year tenor, both remaining fixed for the life of the sukuk. 

The Ijarah Sukuk, by contrast, will be issued at a discount to face value, with profit driven from the difference between face value and investment value.

All instruments carry a minimum bid size of Rs5,000 and multiples thereof. For competitive bids, there is no maximum limit, while non-competitive bids are capped at 0.25% of the pre-auction target amount or Rs500 million, whichever is lower.

The auction will use a Non-Uniform Pricing (Multiple Prices/Pay-as-Bid) allocation mechanism. For the first time, bids on FRR-Fresh instruments will be placed on the basis of price up to four decimal places, rather than yield percentage as in previous auctions.

Broker Clearing Members (BCMs), Non-Broker Clearing Members (NBCMs), and Professional Clearing Members (PCM) of the National Clearing Company of Pakistan Limited (NCCPL) are eligible to participate for their proprietary accounts, investors, and funds under management.

According to the notice, participants must submit their expression of interest along with a 10% advance committed cash amount, where applicable, between July 28 and July 31, 2026. Investor and instrument mapping will also take place during this window, while the advance cash amount must be deposited with NCCPL by Monday, August 3, 2026. 

Bidding will take place from 10:00 am to 12:00 pm on the auction day, with final settlement scheduled for August 5, 2026.

The instruments carry maturity dates of August 5, 2029 for the 3-year sukuk, August 5, 2031 for the 5-year sukuk, and August 5, 2036 for the 10-year sukuk. 

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

Pakistan Domestic Sukuk Company Limited (PDSCL), a wholly owned subsidiary of the Ministry of Finance, is the issuer, while NCCPL will act as paying agent and CDC Share Registrar Services Limited as registrar.