SBP raises just Rs17.6bn through PIB-PFL auction

March 20, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Pakistan Investment Bond – Floating Rate (PIB-PFL) semiannual worth Rs17.6 billion for 5 and 10 years against a target of Rs200bn.

The cut-off price for the 5-year PIB-PFL semiannual stood at Rs95.8220, while for the 10-year one, it stood at Rs93.5557.

SBP received bids worth Rs160.11bn for PIB-PFL semiannual and Rs3.83bn for PIB-PFL quarterly. Out of these, the central bank accepted Rs17.6bn for the semiannual floaters, while none were accepted for the quarterly PIB.

The settlement date for the successful bids is March 21, 2024.

The amount raised through PIB-PFL semiannual comes from the sale of 5-year and 10-year semiannual PIBs worth Rs7.6bn and Rs10bn, respectively.

The total sum raised through 5-year and 10-year semiannual bonds represents Rs10.61bn raised by SBP through competitive bids and Rs7bn raised through non-competitive bids.

The target for the PIB-PFL semiannual was to raise Rs160bn through the sale of 5-year and 10-year PIB, Rs80bn each.

In the case of PIB-PFL quarterly, it was to raise Rs40bn with the sale of 2-year and 3-year PIB-FRF, Rs20bn each.

To note, the central bank in the last auction held on March 06, 2024 sold PIBs-PFL worth Rs65.25bn against a target of Rs70bn.

The cut-off price stood at 95.8706 and 93.6522 for the 5-year and 10-year PIB-PFL semiannual.

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