SBP raises Rs170.5bn through PIB-PFL

July 24, 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 Rs170.46 billion for 3, 5 and 10 years against a target of Rs210bn.

The cut-off price for the 5-year PIB-PFL semiannual stood at Rs96.5288, while for the 10-year bond, it stood at Rs94.4884.

While the cut-off price for the 3-year PIB-PFL quarterly stood at 98.8149.

SBP received bids worth Rs236.37bn for PIB-PFL semiannual and Rs186bn for PIB-PFL quarterly. Out of these, the central bank accepted Rs145.06bn for the semiannual floaters, while 25.41bn were accepted for the quarterly PIB.

The settlement date for the successful bids is July 25, 2024.

The amount raised through PIB-PFL semiannual comes from the sale of 5-year and 10-year semiannual PIBs worth Rs126.06bn and Rs19bn, respectively.

The total sum raised through 5-year and 10-year semiannual bonds represents Rs138.87bn raised by SBP through competitive bids and Rs6.18bn raised through non-competitive bids.

The target for the PIB-PFL semiannual was to raise Rs200bn through the sale of 5-year and 10-year PIB, Rs100bn each.

In the case of PIB-PFL quarterly, it was to raise Rs10bn with the sale of 2-year and 3-year PIB-FRF, Rs10bn each.

To note, the central bank in the last auction held on July 10, 2024 sold PIBs-PFL worth Rs64bn against a target of Rs210bn.

The cut-off price stood at 96.5472 and 94.484 for the 5-year and 10-year PIB-PFL semiannual. While bids were rejected for the quarterly PIB.

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