Karachi: Pakistan Stock Exchange Limited is set to conduct a series of GOP Ijarah Sukuk auctions from September to November 2024. According to information available from the Pakistan Stock Exchange (PSX), the auctions are aligned with the Revised Auction Target Calendar for the period.
This strategic move involves the sale of short-term and fixed to variable rental rate Sukuk securities. Specifically, the short-term Sukuk, with a 12-month maturity, will see its first auction on September 16, 2024, with a target size of 100 billion PKR, followed by subsequent auctions on October 3, 2024, and November 14, 2024, targeting 200 billion PKR and 50 billion PKR respectively.
In addition to the short-term offerings, the fixed rental rate Sukuks will be auctioned on the same dates. The September auction aims to raise 75 billion PKR, distributed evenly across three, five, and ten-year tenors. The October auction will target 150 billion PKR, and the November auction aims for 30 billion PKR, also evenly distributed across the various tenors.
The variable rental rate Sukuks mirror the structure and schedule of the fixed rate securities, maintaining the same target sizes and distribution across tenors.
These auctions are crucial for facilitating government financing needs through Islamic financial instruments, catering to investors seeking Sharia-compliant investment opportunities. The notice underscores the importance of these auctions in bolstering economic stability and meeting fiscal requirements through alternative financing routes.