June 29, 2020 (MLN): The Government of Pakistan intends to use all instruments in its debt armory to raise Rs.2.610 trillion during the next quarter from Banks & other financial institutions.
According to auction schedules released by the State Bank of Pakistan (SBP), targets have been set for Market Treasury Bills (MTB), Pakistan Investment Bonds (PIB) with Fixed and Floating rate coupons and GOP Ijara Sukuk (GIS) with Variable and Fixed rental rates.
The maturing amount during the next quarter is Rs.2.772 trillion showing a net retirement of Rs.162.30 billion by the government.
Auction target for the MTBs has been set at Rs1.20 trillion, the highest of any instrument. However, the Maturing amount in Treasury Bills is Rs.2.670 trillion which means the government will be transferring Rs.1.410 trillion to longer term securities.
Of these longer term securities, the highest auction target is of Rs.840 billion from Floating rate PIBs for 3, 5 and 10 year. Recently the SBP issued Floating rate bonds for 3 and 5 years as it previously issued only 10 year FRR bonds. The Floating rate bonds will be re-opening of the June 18, 2020 issue.
The current coupon rates for floating rate PIBs is 8.2670 percent for 3 years, 8.3070 percent for 5 year and 8.5170 percent for 10 years.
The SBP will also issue Fixed Rate bonds of 3, 5, 10, 15 and 20 years and has set the auction target at Rs.420 billion. The 15 year bond will be a re-opening of the April 16, 2020 issue while the remaining bonds will be from the September 19, 2019 issue.
Coupon Rate for the fixed rate PIBs is 9.00 percent for 3 year, 9.50 percent for 5 years, 10 percent for 10 years, 10.50 percent for 15 years and 11.00 percent for 20 years.
Fixed rate bonds maturing during the period amount to Rs.101.40 billion, which means the government will pick up a net Rs.318.60 billion.
Finally, the SBP intends to raise Rs.150 billion from GOP Ijara Sukuks which will be divided equally between Fixed and Variable Rental Rate instruments.
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