SBP raises Rs182.82bn through PIB-PFL auction

December 13, 2023 (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 Rs182.82 billion for 2, 3, 5 and 10 years against a target of Rs280bn.

It is crucial to mention that the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) on Tuesday decided to keep the policy rate unchanged at 22% for the fourth consecutive meeting.

SBP received bids worth Rs520.958bn for PIB-PFL semiannual and Rs72.5bn for PIB-PFL quarterly, out of which the central bank accepted Rs150.918bn and Rs31.9bn respectively.

The amount raised through PIB-PFL quarterly comes from the 3-year tenure bond as the central bank did not accept bids for the 2-year quarterly PIB.

The total amount of Rs31.9bn raised through PIB-PFL quarterly includes Rs31.5bn raised through competitive bids and the remaining Rs400,000 through non-competitive bids.

Additionally, Rs61.965bn was raised through the 5-year PIB-PFL semiannual, while Rs88.953bn was raised through the 10-year semiannual bond.

The total sum raised through 5-year and 10-year semiannual bonds represents Rs179.208bn raised by SBP through competitive bids and the remaining Rs3.61bn raised through non-competitive bids.

The cut-off price for the 3-year PIB-PFL quarterly was Rs98.0858.

While for the PIB-PFL semiannual, the cutoff was Rs96.2500 for the 5-year bond and for the 10-year one it stood at Rs93.8579.

The settlement date for the successful bids is December 14, 2023.

To note, the target for the PIB-PFL semiannual was to raise Rs120bn through the sale of 5-year and 10-year PIB, Rs60bn each.

In the case of PIB-PFL quarterly, it was to raise Rs160bn with the sale of 2-year and 3-year PIB-FRF, Rs80bn each.

The central bank, in the last auction held on November 29 sold PIBs-PFL worth Rs820.85bn for 2, 3, 5 and 10 years against a target of Rs280bn.

The cut of price stood at  Rs98.1276, Rs97.0617 and Rs94.6545 for the 3-year PIB-PFL quarterly, 5-year and 10-year PIB-PFL semiannual respectively.

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