ISLAMABAD: The State Bank of Pakistan (SBP) said on Tuesday that another Government of Pakistan (GoP) Ijara Sukuk would be issued as per the transaction structure in accordance with provisions of Ijara Sukuk Rules, 2008.

The SBP, in a circular, said as per transaction mechanism, profit on the Sukuk would be based on Rental rate benchmarked against the latest weighted average yield of the six month Market Treasury Bills or six month PKRV (as per FSCD circular 13 of September 6, 2008).

The rental rate may be adjusted based on the difference between estimated supplementary rental and actual maintenance expenses of the underlying asset.

The SBP also decided that for this particular issue of GIS (M3), the total auction participation of a single primary dealer (PD) would be capped at Rs25 billion or 20pc of total demand and time liabilities-Islamic (excluding FE-25 deposits) of the respective PD Islamic bank/Islamic window of that particular PD.

For this purpose, total demand and time liabilities‑Islamic as of March 28, 2014 would be used as reported to the SBP.

All Islamic banks and commercial banks with Islamic branches have been designated as primary dealers for participating in the GoP Ijara Sukuk auction.

Published in Dawn, June 18th, 2014