SBP raises just Rs6.35bn through PIB-PFL auction against Rs100bn target

February 21, 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 and quarterly worth Rs6.35 billion for 2, 3, 5 and 10 years against a target of Rs100bn.

The cut-off price for the 5-year PIB-PFL semiannual stood at Rs95.8557, while for the 10-year one, it stood at Rs93.6342.

SBP received bids worth Rs251.8bn for PIB-PFL semiannual while no bids were received for PIB-PFL quarterly. Out of these, the central bank accepted Rs6.35bn for the semiannual floaters.

The settlement date for the successful bids is February 22, 2024.

The amount raised through PIB-PFL semiannual comes from the sale of 5-year and 10-year semiannual PIBs worth Rs4.35bn and Rs2.01bn, respectively.

The total sum raised through 5-year and 10-year semiannual bonds represents Rs5.55bn raised by SBP through competitive bids and Rs0.8bn raised through non-competitive bids.

To note, the target for the PIB-PFL semiannual was to raise Rs40bn through the sale of 5-year and 10-year PIB, Rs20bn each.

In the case of PIB-PFL quarterly, it was to raise Rs60bn with the sale of 2-year and 3-year PIB-FRF, Rs30bn each.

To note, the central bank in the last auction held on February 06, 2024 sold PIBs-PFL worth Rs345bn against a target of Rs280bn.

The cut-off price stood at Rs95.8598 and Rs94.0868 for the 5-year and 10-year PIB-PFL semiannual.

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