Please refer to FSCD Circular No. 13 dated September 06, 2008 and FSCD Circular No. 10 dated July 08, 2010 on the subject matter cited above.
In accordance with provisions of the notification of the GoP Ijara Sukuk Rules, 2008, another GoP Ijara Sukuk will be issued as per the Transaction Structure described in Annexure “C”. Details covering the structure, transaction fact sheet, documentation and sample Tender Form are attached for information.
As per transaction mechanism, profit on the GOP Ijara Sukuk will be based on the followings:
(i) Rental rate benchmarked against the latest weighted average yield of the 6 month Market Treasury Bills or 6 month PKRV (as per FSCD circular 13 dated September 06, 2008).
(ii)
The rental rate as mentioned at (i) above may be adjusted based on the difference between estimated supplementary rental and actual maintenance expenses of the underlying asset as explained in Annexure “C”.
Further it has been decided as follows:
1. |
For this particular issue of GIS (M-3), the total auction participation of a single PD will be capped at whichever is the lower of the following: a) PKR 25 billion or b) 20% of Total Demand & Time Liabilities-Islamic (excluding FE-25 deposits) of the respective PD Islamic bank / Islamic window of that particular PD.
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2. |
For this purpose, Total Demand & Time Liabilities – Islamic as of 28th March, 2014 will be used as reported to the State Bank of Pakistan.
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3. |
In case any PD breaches the aforesaid limit, SBP reserves the right to cancel all or some of the bids of the concerned bank.
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4. |
All Islamic banks and commercial banks with Islamic Branches are designated as primary dealers for participating in the auction of GOP Ijara Sukuk. |
All designated Primary Dealers for the GOP Ijara Sukuk are advised to ensure meticulous compliance with the above instructions.
All other instructions on the subject shall, however, remain unchanged.
Enclosed:
Annexure ‘A’: Copy of Ijara Sukuk Rules 2008
Annexure ‘B’: Sample Tender Form
Annexure ‘C’: Transaction Structure
Annexure ’D’: Transaction Fact Sheet
Annexure ‘E’: Certificate Subscription Undertaking
Annexure ‘F’: Certificate Issuance Undertaking