ISLAMABAD: The government of Pakistan successfully raised Rs109.297 billion through its first-ever issuance of hybrid sukuks at the Pakistan Stock Exchange (PSX), according to a statement released by the bourse on Thursday.
The inaugural offering included two instruments: a 1-year fixed-rate discounted Government of Pakistan Hybrid Sukuk and a 10-year variable rental rate (VRR) Government of Pakistan Hybrid Sukuk.
âThe overall issues were oversubscribed by 1.45 times, surpassing the total target amount of PKR 200 billionâŠThe cut-off rental rates were set at 11.8000% for 1 Year Discounted and 11.7185% for 10 Year VRR,â the statement said.
The hybrid sukuk structure combines an Ijarah Sale & Lease Back (Ijarah SLB) component with a Commodity Murabaha arrangement, with 55% of proceeds allocated to Ijarah SLB and 45% to Commodity Murabaha.
According to the statement, this structure highlights Pakistanâs growing sophistication in Islamic finance and establishes a new benchmark for Shariah-compliant instruments in the region. It is also expected to boost investor participation and strengthen the countryâs position in Islamic financial innovation.
The issuance was conducted through an auction process by Capital Market Infrastructure Institutions (CMIIs) under the existing auction framework.
Khaliq Uz Zaman, Director Domestic Debt, described the hybrid structure as a major milestone for Pakistanâs Islamic finance market. âIt will diversify the investor base and deepen the domestic debt market, which will eventually reduce borrowing costs, which was a key objective of the Debt Management Office (DMO).â
The issuance was completed by the Debt Management Office of the Ministry of Finance in collaboration with the State Bank of Pakistan (SBP), the Securities and Exchange Commission of Pakistan (SECP), and joint financial advisors including Meezan Bank Limited, Bank Alfalah Limited, Dubai Islamic Bank, and BankIslami Pakistan Limited.
It also involved key capital market institutions such as Pakistan Stock Exchange Limited (PSX), National Clearing Company of Pakistan Limited (NCCPL), Central Depository Company of Pakistan Limited (CDCPL), and SCB Sadiq.
