SBP raises just Rs5.4bn through PIB-PFL auction

April 03, 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 just Rs5.4 billion for 5 years against a target of Rs200bn.

The cut-off price for the 5-year PIB-PFL semiannual stood at Rs95.8364.

SBP received bids worth Rs111bn for PIB-PFL semiannual and Rs16.89bn for PIB-PFL quarterly. Out of these, the central bank accepted Rs5.4bn for the semiannual floaters, while none were accepted for the quarterly PIB.

The settlement date for the successful bids is April 04, 2024.

The amount raised through PIB-PFL semiannual comes from the sale of 5-year semiannual PIBs, while the bids for 10-year semiannual PIBs were rejected.

The total sum raised through 5-year semiannual bond represents Rs5bn raised by SBP through competitive bids and Rs0.4bn 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 3-year PIB-FRF.

To note, the central bank in the last auction held on March 20, 2024 sold PIBs-PFL worth Rs17.6bn against a target of Rs200bn.

The cut-off price stood at 95.822 and 93.5557 for the 5-year and 10-year PIB-PFL semiannual.

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