Corporate

Investor Portfolio Securities

Being a primary dealer, Faysal Bank Limited is offering Investor Portfolio Securities accounts (IPS) to its customers. IPS Accounts are custodial accounts maintained for buying and holding Government Securities (T-Bills, PIBs and Ijara Sukuks) on behalf of their customers. The types of Government Securities that customers can invest through IPS account(s) are:

Treasury Bills (T‐Bills) are zero coupon (scrip less) instruments issued by the Government of Pakistan and sold through the State Bank of Pakistan via fortnightly auctions. T-bills are issued for 3 months, 6 months and 1 year. Minimum amount required to invest in T-bills is Rs.100,000/- and are issued in multiple of Rs. 5,000/-. Withholding tax is deducted as per existing law and no zakat is deducted at source. T-bills are negotiable instruments, can be easily traded in secondary market. At maturity the face value of the bond will be credited into customers account.

Pakistan Investment Bonds (PIBs) are long term (scrip less) bonds issued by the Government of Pakistan and sold through the State Bank of Pakistan via periodic auctions. PIBs are issued in tenors of 3, 5, 7, 10, 15, 20 & 30 years. PIBs are issued in multiples of Rs. 100,000/- with semi-annual coupon payments. Withholding tax is deducted as per existing law and no zakat is deducted at source. T-bills are negotiable instruments, can be easily traded in secondary market. Coupon payments and the face value of the bond at maturity are guaranteed by the Government of Pakistan.

Ijara Sukuks are three year Shariah compliant (scrip less) bonds issued by the Government of Pakistan and sold through the State Bank of Pakistan via periodic auctions. Ijara Sukuks are issued in multiple of Rs. 100,000/-. The profit on Sukuk is paid semiannually on the rental rate announce by State Bank of Pakistan semiannually.

Ways of Investment in Government Securities

Primary Market i.e through State Bank of Pakistan auction. This is done placing competitive bids or non-competitive bids through Faysal Bank Limited.

Secondary market by purchasing/ selling PIBs, T-Bills and Ijara Sukuks from Faysal Bank

For further queries related to investments in Government securities or IPS please feel free to contact us at 021-32795631, 021-32795317, 021-32795363 and 021-32795309 or e-mail us at [email protected]

Charges

Transaction charges are applicable as per bank’s Schedule of Charges.