PSX sets May 18 auction for Rs150bn GoP Hybrid & Ijarah Sukuk

May 13, 2026 (MLN): The Pakistan Stock Exchange (PSX) has formally declared a primary market auction for Government of Pakistan Hybrid Sukuk (GHS) and GoP Ijarah Sukuk (GIS), scheduled to take place on Monday, May 18, 2026, through the PSX Auction System.

The declaration, issued via PSX notice PSX dated May 12, 2026, follows an earlier revised auction calendar notice released on May 11, 2026.

The upcoming auction marks the 5th GoP Hybrid Sukuk auction, offering 3-year and 5-year Fixed Rental Rate (FRR) instruments as fresh issues, while simultaneously conducting the 34th GoP Ijarah Sukuk auction featuring a 4th re-opening of the 10-year Fixed Rate Zero Coupon instrument.

Each of the three instruments carries an individual target size of Rs50bn, making the combined auction target a substantial Rs150bn.

The minimum bid size across all instruments has been set at Rs5,000 and in multiples thereof, with no upper limit applicable for competitive bids.

However, non-competitive bids are capped at 0.25% of the pre-auction target or Rs500m per investor, whichever is lower.

The GoP Hybrid Sukuk is structured on a dual-transaction Shariah model, combining an Ijarah Sale and Lease Back transaction with a Commodity Murabaha transaction.

Under this structure, 55% of the sukuk proceeds are allocated to the Ijarah SLB component while the remaining 45% is directed toward the Commodity Murabaha transaction.

Profit on the Hybrid Sukuk will be paid on a semi-annual basis, driven by returns from both underlying transactions.

The 10-year Ijarah Sukuk, on the other hand, operates as a zero-coupon instrument issued at a discount, with the Ijarah rental equal to the difference between face value and investment value payable in full at maturity.

Both sukuk instruments will be issued by Pakistan Domestic Sukuk Company Limited (PDSCL), a wholly owned subsidiary of the Ministry of Finance, Government of Pakistan.

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, while Ahmed & Qazi Advocates & Legal Consultants has been appointed as legal advisor.

The National Clearing Company of Pakistan Limited (NCCPL) will act as the paying agent, and the Central Depository Company (CDC) will serve as registrar and custodian, with all sukuk units maintained in book-entry form within the Central Depository System.

Participation in the auction is open to all Broker Clearing Members (BCMs), Non-Broker Clearing Members (NBCMs), and Professional Clearing Members (PCMs) of NCCPL, who may bid on behalf of their proprietary accounts, investors, or funds under management.

Eligible investors include individuals, institutions, trusts, corporate entities, banks, insurance and Takaful companies, Roshan Digital Account holders, non-resident Pakistanis, and foreign investors, regardless of their residential status.

New investors without a CDC Sub Account can participate through the Facilitation Account service offered by CDC.

The auction window for both competitive and non-competitive bidding will run from 10:00 a.m. to 12:00 p.m. on auction day, with the final settlement of amounts due the following day, Tuesday, May 19, 2026.

Participants eligible for advance amounts under NCCPL regulations were required to submit their expressions of interest along with a 10% instrument-wise advance cash amount between May 13 and May 14, 2026.

Advance cash deposits were to be made through NCSS terminals by May 15, 2026, failing which the respective participant would be disabled from the bidding session.

Upon successful issuance, both sukuk instruments will be listed and freely tradable on the Pakistan Stock Exchange, and are designated as 100% Statutory Liquidity Ratio (SLR) eligible instruments for all qualifying investors.

PSX, CDC, and NCCPL expressed their anticipation of market participants' continued support toward the successful primary issuance of sukuk through Pakistan's capital market.

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