Karachi: All market participants are set to engage in the 12th auction of Government of Pakistan Ijarah Sukuk (GIS) slated for August 15, 2024. This auction, conducted via the Pakistan Stock Exchange (PSX) Auction System, will be open to Broker Clearing Members (BCMs), Non-Broker Clearing Members (NBCMs), and Professional Clearing Member (PCM) of the National Clearing Company of Pakistan Limited (NCCPL).

According to information available from the Pakistan Stock Exchange (PSX), this financial event follows the guidelines provided in the PSX Notice# PSX/N-743 dated August 2, 2024, which details the Auction Calendar for GIS. The participant administration user details from the 11th auction on July 25, 2024, will be utilized 'as is' for this upcoming auction. Moreover, all participants are expected to use their previous credentials for investor mapping, cash assignment, and bidding.

In the run-up to the auction, BCM participants need to express their interest and communicate an advanced 10% instrument-wise committed cash amount from August 8 to August 12, 2024, through email correspondence with NCCPL/PSX. Additionally, existing investors from the previous auction will maintain their registration, requiring only the mapping of instruments and cash assignment where applicable.

Key auction dates include August 13 for the final submission of the advanced cash amount through the NCSS terminal. The auction will cover all five instruments—both competitive and non-competitive—and will culminate in the final collection of the settlement amount on August 16, 2024.

This auction is significant for the financial market as it includes instruments with varied terms and conditions, including 1-year fixed-rate GIS discounted and 3 and 5-year GIS-fixed and variable rental rates, each seeking to raise PKR 20 billion. The auction emphasizes the use of the online portal (https://debt.psx.com.pk/) for bid placements, highlighting the integration of technology in financial transactions.