GoP targets Rs125bn through 14th Hybrid Sukuk Auction on August 5

July 29, 2026 (MLN): The 14th GoP Hybrid Sukuk (GHS) auction will be conducted on Wednesday, August 5, 2026 through the PSX Auction System, with a combined target of Rs125bn across four instruments.

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

Operational modalities will remain the same for both GHS and GoP Ijarah Sukuk (GIS) auctions.

Four instruments will be auctioned by the Pakistan Domestic Sukuk Company Limited (PDSCL) through the Ministry of Finance.

These include a 3-Month Fixed Rate Discounted GHS (Fresh Issue) under Instrument Code P03GHS291026, maturing October 29, 2026, with a tenor of 84 days and a target of Rs25bn.

A 6-Month Fixed Rate Discounted GHS (Fresh Issue) under Instrument Code P06GHS040227, maturing February 4, 2027, with a tenor of 182 days and a target of Rs25bn.

A 1-Year Fixed Rate Discounted GHS (Fresh Issue) under Instrument Code P01GHS050827, maturing August 5, 2027, with a tenor of 364 days and a target of Rs25bn.

The fourth instrument is a 10-Year Variable Rental Rate GHS (1st Re-Opening) under Instrument Code P10VRR230736, originally issued on July 23, 2026, with a target of Rs50bn.

For the 10-Year VRR Sukuk, the re-opening settlement date is August 6, 2026, with 14 accrued days.

The applicable benchmark (coupon) rate for the first period is 11.3904%, translating into a price premium of Rs21.8446 per Rs5,000 face value, calculated as Bid Face Amount multiplied by the cut-off rental rate of the fresh issue divided by 365, multiplied by accrued days.

A Non-Uniform Pricing (Multiple Prices/Pay-as-Bid) allocation mechanism applies to all Sukuk types. Competitive bidders will be allocated at their respective bid price, while non-competitive bidders will be allocated at the weighted average yield.

The minimum bid size across all instruments is Rs5,000 and multiples thereof. For competitive bids there is no maximum amount limit; for non-competitive bids, the maximum limit per investor is capped at 0.25% of the pre-auction target amount or Rs500m, whichever is lower.

Auction bidding (competitive and non-competitive) will run from 10:00 a.m. to 12:00 p.m. on August 5, with final settlement on August 6 between 9:00 a.m. and 12:00 p.m.

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

Eligible investors include individuals, institutions, trusts, funds of all types, bodies corporate including banks, non-banking finance companies, insurance and Takaful companies irrespective of residential status, RDA customers, non-resident Pakistanis, and foreign investors and international Islamic banks and financial institutions.

New investors without a CDC Sub Account can participate through CDC's Facilitation Account service.

Participants where advance amount is applicable under NCCPL regulations must communicate their expression of interest along with a 10% advance instrument-wise cash commitment to NCCPL and PSX.

The subject line should specify "Primary Market Auction Setup," between Wednesday, July 29 and Monday, August 3 (9:00 a.m. to 4:00 p.m.).

They must submit the advance cash amount through the GDS Advance Deposit screen on their NCSS terminals.

Participant registration, instrument mapping and cash assignment will run over the same window (July 29–August 3), with registration and credential issuance from 10:00 a.m. to 5:00 p.m., and instrument mapping/cash assignment from 10:30 a.m. to 7:00 p.m.

Participants who did not take part in the last auction must register their investors afresh.

Advance cash committed to NCCPL must be deposited through the NCSS terminal on Tuesday, August 4, between 9:00 a.m. and 11:00 a.m.; failure to do so will result in the participant being disabled for the bidding session.

For new investor registration, participants must provide accurate UIN, CDC Participant ID and CDC Sub Account/Investor Account numbers, as the Auction System is integrated with the CDS for validation. Where an investor has no CDC Sub Account or Investor Account, participants must input "00000" in that field.

Advance cash requirements vary by participant type: for BCMs, CDC IAS, PCM and other applicable participants, the amount is collected per the notified schedule with the balance collected on settlement date (A+1); NBCM banks/DFIs require a Standing Instruction one day before the auction; NBCM mutual funds require an irrevocable undertaking from the trustee one day before the auction.

Where successful investors fail to fulfil their money obligation, participants may ask NCCPL to park the units in the participant's house account instead of the investor's account.

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

Meezan Bank Limited acts as Transaction Agent for commodity purchase on behalf of investors, while NCCPL acts as Transaction Agent for commodity sale on behalf of the Ministry of Finance.

NCCPL is the Paying Agent, and Central Depository Company (CDC) Share Registrar Services Limited is the Registrar.

The Sukuk will be inducted into CDC's Central Depository System and will be listed and tradable on PSX. Legal advisory is being handled by Ahmed & Qazi Advocates & Legal Consultants.

PSX Notice dated July 28, 2026, issued with reference to PSX Notice PSX/N-885 dated July 15, 2026 on the revised auction calendar for GHS and GIS.

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