Karachi: The Pakistan Stock Exchange (PSX) has announced the upcoming 20th GoP Hybrid Sukuk (GHS) auction and the 39th GoP Ijarah Sukuk (GIS) auction, scheduled for Wednesday, October 7, 2026. These auctions, set to take place through the PSX Auction System, are a crucial event for market participants, offering 3-year and 5-year Fixed Rental Rate (FRR) Hybrid Sukuks and a 10-year Fixed Rate Zero Coupon Ijarah Sukuk.
According to information available from the Pakistan Stock Exchange (PSX), the Hybrid Sukuk structure will include an Ijarah Sale & Lease Back (Ijarah SLB) transaction and a Commodity Murabaha transaction, with 55% of proceeds designated for Ijarah SLB and 45% for Commodity Murabaha. The auction will employ a Non-Uniform Pricing (Multiple Prices/Pay-as-Bid) allocation mechanism applicable to all Sukuk instruments.
Participants in the auction include Broker Clearing Members (BCMs), Non-Broker Clearing Members (NBCMs), and Professional Clearing Members (PCMs) of the National Clearing Company of Pakistan Limited (NCCPL). These participants are eligible to bid for their proprietary accounts, investors, and funds under management. The PSX has implemented changes to the auction system, allowing bids to be placed on the basis of price to four decimal places instead of yield percentage, a shift from previous auction protocols.
The coupon rate for FRR-Fresh instruments, provided in advance by the Ministry of Finance (MoF), will remain constant throughout the life of the Sukuk. Competitive bidders will receive allocations based on their respective bid prices, while non-competitive bidders will be allocated based on the weighted average price or yield percentage.
Participants are required to use their existing credentials for the auction, and any updates to participant admin details must be communicated to PSX/NCCPL. Those eligible for advance amounts as per NCCPL regulations need to provide a 10% advance committed amount per instrument via email.
The auction system, integrated with the Central Depository System (CDS), mandates accurate data entry for new investor registrations. This includes User Identification Numbers (UIN), CDC Participant IDs, and CDC Sub Account or Investor Account numbers. Participants are advised to verify instrument mapping from the Bid Screen post-login to ensure accuracy before the auction.
The auctions represent a significant opportunity for market participants to engage in government-backed Sukuk investments, reflecting the evolving landscape of financial instruments available through the PSX.