PSX to hold Rs150bn GoP Sukuk auction on Aug 4

July 28, 2026 (MLN): The Pakistan Stock Exchange (PSX) will conduct the 13th GoP Hybrid Sukuk (GHS) auction of 3 and 5-Year Fixed Rental Rate (FRR) fresh issue and the 37th GoP Ijarah Sukuk (GIS) auction of 10-Year Fixed Rate Zero Coupon fresh issue on Tuesday, August 4, 2026, through the PSX Auction System, with bidding scheduled from 10:00 a.m. to 12:00 p.m.

The Hybrid Sukuk structure comprises an Ijarah Sale and Lease Back (Ijarah SLB) transaction and a Commodity Murabaha transaction, with 55% of proceeds allocated to the Ijarah SLB portion and 45% to Commodity Murabaha, and operational modalities remain the same for both the GHS and GIS auctions.

All 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.

A Non-Uniform Pricing (Multiple Prices/Pay-as-Bid) allocation mechanism will apply to all Sukuk instruments, and for the FRR-Fresh auction, bids will now be placed on the basis of price up to four decimal places instead of yield, a change made in the PSX Auction System.

The coupon rate for FRR-Fresh instruments is fixed by the Ministry of Finance in advance and will remain applicable for the entire life of the Sukuk. Allocation to competitive bidders will be based on their respective bid price, while allocation to non-competitive bidders will be based on weighted average price/yield.

Existing Participant Admin User details, both front office and back office, on record with PSX/NCCPL from the last auction will be used as-is, and participants will use the same login credentials, PIN codes, and investor mappings as in the previous auction, with any amendments to Admin user details communicated via email.

Participants eligible for an advance amount under NCCPL regulations must provide an instrument-wise 10% Advance Committed Amount and notify PSX/NCCPL via email with the subject line "Primary Market Auction Setup."

Participants who did not take part in the last auction will need to register new investors, incorporating accurate UIN, CDC Participant ID, and CDC Sub Account or Investor Account numbers, and where an investor holds no CDC Sub Account, participants must enter "00000" in the Participant ID field.

PCMs may register their Trading-Only brokers as investors under clear broker identification or through multiple IDs on the brokers' behalf.

The process begins with participants eligible for advance amounts submitting their expression of interest along with a 10% instrument-wise cash commitment to NCCPL/PSX between July 28 and 31, from 11:00 a.m. to 4:00 p.m., while also depositing the amount through the NCSS GDS Advance Deposit screen; first-time participants must additionally submit two Admin users' details, one each for front and back office.

Over the same four-day window, from 12:00 p.m. to 5:00 p.m., participants will be registered in the Auction System, with login credentials emailed and PIN codes sent via SMS, and from 2:00 p.m. to 7:00 p.m., participants will map auction instruments and assign cash, with those who did not participate in the last auction also registering their investors during this period.

The committed advance cash amount must then be deposited through the NCSS terminal on Monday, August 3, between 9:00 a.m. and 11:00 a.m., failing which the participant will be disabled for the bidding session.

The auction of all instruments, both competitive and non-competitive, will take place on August 4 from 10:00 a.m. to 12:00 p.m., followed by final collection of the settlement amount on August 5 between 9:00 a.m. and 12:00 p.m.

The 3-Year and 5-Year Hybrid Sukuk, carrying instrument codes P03FRR050829 and P05FRR050831, offer fixed profit rates of 11.0000% and 11.5000% respectively, maturing on August 5, 2029 and August 5, 2031, while the 10-Year Ijarah Sukuk, coded P10FRZ050836, matures on August 5, 2036. Each of the three instruments carries a target amount of Rs50bn, taking the combined target to Rs150bn.

The minimum bid size across all instruments is Rs 5,000 and multiples thereof, and while competitive bids face no maximum limit, non-competitive bids are capped at 0.25% of the pre-auction target amount or Rs500m, whichever is lower.

Eligible investors include existing holders of CDC Sub Accounts or CDC IAS Accounts, Roshan Digital Account (RDA) holders through CDC Investor Account Services, and new investors without a CDC Sub Account who can participate through CDC's Facilitation Account service.

Advance cash requirements vary by participant category, with BCMs, CDC IAS holders, and PCMs following the designated schedule and settling the balance on the settlement date (A+1), NBCM banks and DFIs required to furnish a Standing Instruction one day before the auction, and NBCM mutual funds required to provide an irrevocable undertaking from the Trustee one day before the auction.

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

The aforementioned information was disseminated through a notification to Exchange.

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