Karachi, The Pakistan Stock Exchange (PSX) has announced the fourth auction of the Government of Pakistan Ijarah Sukuk (GIS) scheduled for March 14, 2024. This auction, conducted through the PSX Auction System, welcomes participation from Broker Clearing Members (BCMs), Non-Broker Clearing Members (NBCMs), and Professional Clearing Members (PCM) of the National Clearing Company of Pakistan Limited (NCCPL). The auction is open for their proprietary accounts, investors, and funds under their management, marking a significant event in the country's capital market for Islamic finance.
The auction is part of the PSX's ongoing efforts to provide Shariah-compliant investment opportunities, aligning with the broader strategy to enhance the Islamic finance sector within Pakistan. Eligible participants are required to express their interest and commit an advance cash amount instrument-wise, following the procedures outlined in PSX Notice# PSX/N-197 dated March 5, 2024.
Participants from the previous auction held on February 20, 2024, will have their admin user details carried over. Additionally, NBCMs will automatically be assigned all five instruments for distribution to their investors. BCMs must ensure the provision of a 10% Advanced Committed Amount for each instrument and communicate these commitments to the PSX/NCCPL for auction setup.
The auction includes five instruments, ranging from 1-year fixed-rate discounted GIS to 3 and 5-year fixed and variable rental rate GIS, all set for re-opening. The face value per Sukuk is set at Rs.5,000, with a re-opening settlement date scheduled for March 15, 2024. The auction aims to cater to a wide array of investors, including existing investors with CDC Sub Accounts or CDC IAS Accounts, Roshan Digital Account Holders through CDC Investor Account Services, and new investors without CDC Sub Accounts through the Facilitation Account service provided by CDC.
This primary market auction represents a crucial step towards fulfilling the government's and PSX's objectives to broaden the base of Shariah-compliant financial instruments available to investors. By offering a variety of Sukuk with different tenors and rates, the auction not only aims to attract substantial investor interest but also to support the Islamic finance industry's growth and diversification in Pakistan.
The successful issuance of these Sukuk through the capital market underscores the commitment of the PSX, CDC, and NCCPL to support and cooperate towards the successful primary issuance of Sukuk, further enhancing the depth and breadth of Pakistan's financial markets.