Circulars/Notifications - Domestic Market & Monetary Management Department  
 DMMD Circular No. 19 of 2020 August 18, 2020

The Presidents/Chief Executive Officers
All Banks/DFIs/NBFIs

Dear Sirs/Madams,

Reopening of Government of Pakistan Ijara Sukuk

Please refer to FSCD Circular No. 13 dated September 06, 2008, FSCD Circular No. 10 dated July 08, 2010,DMMD Circular no 02 dated February 03, 2016 and DMMD Circular No. 06 dated April 14, 2020, regarding Government of Pakistan (GOP) Ijara Sukuk.

Government of Pakistan (GOP) has decided that GOP Ijara Sukuk (GIS) may also be auctioned as re-opening of previously issued GIS as per attached structure (‘Annexure-A’) and transaction documents(‘Annexure-B’ and ‘Annexure-C’).
Auction Mechanism is as follows:

  1. Re-opening auctions may be conducted for both Fixed and Variable Rental Rate GIS.

  2. Primary Dealers (PDs) of GIS will submit bids in terms of Price, per Rs.100 of face value, up to four decimal points as per sample tender form attached as ‘Annexure-D’. The bid price must not include ‘price premium due to higher first rental’.

  3. The settlement amount of re-opening auction to be paid by successful bidders will be equal to the amount calculated as per accepted (cut off) bid price plus price premium due to higher first rental. The Price premium due to higher first rental will be calculated for the number of days lapsed from  start of the rental period of original issue based on applicable rental amount to the settlement date (the day count convention will be Actual/ 365).

  4. Re-opening auctions of GIS will be conducted through uniform price competitive bidding auction process. The cut-off bid price, at which GOP decides to accept bids, in the re-opening auction will apply uniformly to all accepted bids.

  5. The Non-Competitive Bids (NCBs) of reopened GIS will be accepted at cut-off bid price determined through cut-off in the competitive price auction.

  6. Successful PDs will be required to execute transaction documents of GIS before the settlement date.

  7. All other auction rules and procedures governing GIS will remain the same.

Annexure-A: Transaction Structure for Re-opening of GOP Ijara Sukuk

Annexure-B: Specimen Sukuk Subscription Undertaking

Annexure-C: Specimen Sukuk Issuance Undertaking

Annexure-D: Sample Tender Form


Yours truly,


(Rizwana Rifat)
Additional Director

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