KARACHI: The first inaugural issuance of GoP Ijarah Green Sukuk (GIGS) amounting to Rs 30 billion under the Sustainable Investment Sukuk (SI Sukuk) Framework is scheduled for Friday (May 16) through the PSX auction system.
In a landmark development for sustainable finance, last week the Government of Pakistan had approved the issuance of the country’s first-ever Green Sukuk under the SI Sukuk Framework.
According to PSX announcement, all Broker Clearing Members (BCMs), Non-Broker Clearing Members (NBCMs) and Professional Clearing Member (PCM) of National Clearing Company of Pakistan Limited (NCCPL) are eligible to participate in the Auction for their proprietary accounts, investors and funds under their management. The auction will be conducted as per the auction mechanism currently in place at PSX for issuance of GoP Ijarah Sukuk (GIS).
Green Sukuk makes debut with Rs20-30bn issue
All participants shall use their same credentials (User ID, Password and PIN Code) for this auction as were used in 30th Apr, 2025 auction for investor mapping/cash assignment and bidding. In case of any amendment in the Participants’ Admin user details, participants may provide the updated details to PSX/NCCPL.
BCM participants are required to provide instrument wise 10 percent Advance Committed Amount and inform PSX/NCCPL. The investors registered by the participants in 20th GIS auction dated 30th Apr, 2025 shall remain in the auction system and participants are only required to map the instruments and assign cash where applicable.
The Cabinet Division already granted its approval on April 15, 2025, with the issuance being led by the Ministry of Finance (MoF). Accordingly, the Ministry of Finance (MoF), Debt Management Office (DMO) in collaboration with Securities & Exchange Commission of Pakistan (SECP) and Pakistan Stock Exchange Limited (PSX), last week announced the inaugural issuance of Green Sukuk.
The first inaugural issuance of Green Sukuk amounting to Rs 30 billion, will be executed through an auction process facilitated by the Pakistan Stock Exchange (PSX), the Central Depository Company(CDC), and the National Clearing Company of Pakistan Limited (NCCPL) collectively known as Capital Market Infrastructure Institutions (CMIIs).
The proceeds raised against the SI Sukuk has to be utilized for funding or refinancing of Green, Sustainable and Social projects falling within the following broad categories. These categories are not exhaustive and SI Sukuk may also be issued for utilization on projects falling outside these categories provided the same have been approved by the Project Evaluation and Selection Committee on the basis of assessed environmental benefits and the objective of this Framework.
Structured in full compliance with Shariah principles, the Green Sukuk aims to raise funds for projects that support environmental sustainability, including renewable energy initiatives and green infrastructure development. The auction will follow the existing mechanism implemented by PSX, with detailed guidelines and timelines to be announced separately.
Copyright Business Recorder, 2025
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