SBP announces issuance of new Ijara Sukuk

KARACHI: State Bank of Pakistan (SBP) on Friday announced the issuance of a new 3-year Government of Pakistan Ijara Sukuk.

Under this scheme, Federal government has planned to raise Rs 80 billion in the second quarter of current 2010-2011 fiscal year, said SBP statement here.

In this regard, State Bank has issued details of the new Government of Pakistan Ijara Sukuk issuance program including details of the underlying asset and the related documentation.

Similarly, an auction calendar has also been also announced by the SBP for GOP Ijara Sukuk for the 2nd quarter of FY11.

Under the calendar, two auctions will be conducted in the second quarter of FY11 with a total auction target of Rs 80 billion. First auction will be conducted on Nov. 8, 2010 and the second auction on December 13, 2010. Target for both the auctions is Rs 40 billion each.

Total value of the asset under the present issuance program of GOP Ijara Sukuk is Rs 191.43 billion.

This is the second issuance after the successful launch of the first-ever 3-year GOP Ijara Sukuk in September 2008 under which Government of Pakistan raised Rs 42.2 billion from the 4 auctions conducted from September 2008 to September 2009.

This is the first time an auction calendar has been announced for GOP Ijara Sukuk along the same lines as is issued for Treasury Bills and Pakistan Investment Bonds.