Karachi: In a significant development for Pakistan's financial markets, the Pakistan Stock Exchange (PSX) has announced that the 14th Government of Pakistan (GoP) Hybrid Sukuk auction is set to take place on Wednesday, August 5, 2026. This auction will be conducted through the PSX Auction System, marking a key event for investors in the designated market category.
The auction will feature a unique structure, combining an Ijarah Sale & Lease Back (Ijarah SLB) transaction and a Commodity Murabaha transaction. Specifically, 55% of the proceeds will be allocated to the Ijarah SLB, while the remaining 45% will go towards the Commodity Murabaha. The auction will adhere to the same operational modalities as the GoP Ijarah Sukuk (GIS) auctions.
Eligible participants, including Broker Clearing Members, Non-Broker Clearing Members, and Professional Clearing Members of the National Clearing Company of Pakistan Limited, are invited to participate in the auction for their proprietary accounts, investors, and funds under management.
According to information available from the Pakistan Stock Exchange (PSX), the auction will feature several instruments with varying tenors and conditions. The instruments on offer include a 3-Month Fixed Rate Discounted GoP Hybrid Sukuk, a 6-Month Fixed Rate Discounted GoP Hybrid Sukuk, a 1-Year Fixed Rate Discounted GoP Hybrid Sukuk, and a 10-Year Variable Rental Rate GoP Hybrid Sukuk, which is undergoing its first re-opening since its issue date on July 23, 2026.
The auction's target amount is substantial, with PKR 25 billion allocated for each of the 3-Month, 6-Month, and 1-Year instruments, and PKR 50 billion for the 10-Year Variable Rental Rate Sukuk. The coupon rate for the 10-Year Sukuk is set at 11.3904%, with a price premium calculated based on the accrued days and cut-off rental rate of the fresh issue.
The auction settlement date is scheduled for Thursday, August 6, 2026. Participants are required to adhere to advance cash requirements as per the regulations of the NCCPL, with specific instructions for BCMs, NBCMs, and other participants. In cases where successful investors fail to meet their financial obligations, the NCCPL will park the units in the participant's house account.
This auction represents a strategic financial move for Pakistan, aiming to attract both existing and new investors through the facilitation accounts provided by the Central Depository Company. The event is poised to impact the market dynamics, drawing attention from a wide array of potential investors.