Govt raises Rs76bn across fixed, variable rate Hybrid Sukuks

May 21, 2026 (MLN): The government conducted a primary market auction, for the issuance of Government of Pakistan Hybrid Sukuk (GHS), with a settlement date of May 21, 2026, through PSX.

The government successfully raised a total of Rs76.268bn in face value terms across both fixed and variable rate instruments against a combined pre-auction target of Rs200bn.

Meezan Bank played a leading role in the transaction as Joint Financial Advisor, contributing towards the structuring, development, and successful execution of the Sukuk programme, further reinforcing its position as a key player in Pakistan’s Islamic capital markets landscape.

1-Year Fixed Rate Discounted GoP Hybrid Sukuk (FRD)

Tenders for the fresh issue of the 1-Year Fixed Rate Discounted (FRD) GoP Hybrid Sukuk were invited against a pre-auction target of Rs150bn. Total face value bids received amounted to Rs51.932bn, with an expected price range spanning from 87.1767 to 89.3119.

Out of the total bids received, the government accepted just Rs0.425bn through competitive bids at a cut-off rental rate of 12.4880% and a cut-off price of 88.9254.

An additional Rs1.452bn was accepted through non-competitive bids, bringing the total acceptance for the 1-Year tenor to Rs1.877bn in face value terms.

Auction Result — 1-Year FRD GoP Hybrid Sukuk

10-Year Variable Rental Rate GoP Hybrid Sukuk (VRR)

Concurrently, the PSX held the 3rd re-opening of the 10-Year Variable Rental Rate (VRR) GoP Hybrid Sukuk, originally issued on April 16, 2026.

Unlike the fixed-rate instrument, the 10-Year VRR tenor saw heavy participation. Total face value bids reached Rs210.265bn against a pre-auction target of Rs50bn, with a price margin range of 90.0146 to 99.9743.

The government ended up raising an amount well above the initial target, accepting a total of Rs74.391bn in face value.

This included Rs74.265bn raised through competitive bids at a cut-off margin/price of 99.1795, alongside Rs0.126bn accepted via non-competitive bids.

Auction Result — 10-Year VRR GoP Hybrid Sukuk

The Government of Pakistan's Hybrid Sukuk programme has emerged as a key tool for expanding the investor base, easing liquidity management within the Islamic banking sector, and offering the government an alternative capital market funding avenue.

The successful issuance also showcases the coordinated efforts of the Ministry of Finance, the State Bank of Pakistan, and the Pakistan Stock Exchange in deepening the domestic Sukuk market through consistent sovereign Islamic issuances and broadening access to Shariah-compliant investment opportunities.

Copyright Mettis Link News