SBP raises over Rs654bn through Fixed Rate PIB

September 6, 2025 (MLN): The State Bank of Pakistan (SBP) successfully raised Rs654.3 billion through its latest Pakistan Investment Bonds (PIBs) auction, surpassing the target of Rs400 billion, with settlement scheduled for September 8, 2025. 

This demonstrates a robust investor appetite for government securities amid a rising yield environment.

The auction attracted total bids worth Rs28 trillion across five different maturities, indicating strong market confidence in Pakistan's debt instruments.

The central bank accepted Rs638.9bn in competitive bids, with an additional Rs15.4bn in non-competitive bids, bringing the total acceptance to Rs654.3bn

Government borrowing costs ranged from 11.11% to 12.38%. The 2-year zero coupon PIBs achieved a weighted average yield of 11.16% with a cut-off yield of 11.20%, while 3-year fixed coupon bonds recorded the lowest weighted average yield at 11.11% (cut-off 11.14%).

Medium-term 5-year bonds yielded 11.41% on average with a cut-off of 11.44%, and 10-year instruments saw yields climb to 12.01% average (cut-off 12.04%).

The longest 15-year zero coupon bonds commanded the highest yield at 12.38%.

The successful auction indicates continued market confidence in Pakistan's government securities, with competitive bidding ensuring efficient price discovery across the yield curve.

Auction Results Summary

The following table shows the detailed results for each tenor:

Tenor
Bond Type
Face Value Accepted (PKR Million)
Cut-off Price
Cut-off Yield
Weighted Avg Yield
Total Bids Received (PKR Million)
2-Year
Zero Coupon
39,450
82.13%
11.20%
11.16%
91,302
3-Year
Fixed Coupon
5,584
98.44%
11.14%
11.11%
100,434
5-Year
Fixed Coupon
108,850
98.37%
11.44%
11.41%
236,580
10-Year
Fixed Coupon
205,000
96.90%
12.04%
12.01%
356,792
15-Year
Zero Coupon
280,000
17.82%
12.38%
12.38%
497,500
Total
All Types
638,884
-
-
-
1,282,608

Total Acceptance Including Non-Competitive Bids

Tenor
Competitive Bids
Non-Competitive Bids
Total Acceptance
2-Year
39,450
3,839
43,289
3-Year
5,584
2,561
8,145
5-Year
108,850
6,144
114,994
10-Year
205,000
2,855
207,855
15-Year
280,000
0
280,000
Total
638,884
15,399
654,283

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