SBP raises Rs341.28bn through PIB-PFL auction

November 01, 2023 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Pakistan Investment Bond – Floating Rate (PIB-FRR) semiannual and quarterly worth Rs341.276 billion for 2, 3, 5 and 10 years against a target of Rs280bn.

SBP received bids worth Rs812.5bn for PIB-FRR semiannual and Rs282bn for PIB-FRR quarterly, out of which the central bank accepted Rs245.369bn and Rs95.91bn respectively.

The central bank picked up Rs51.8466bn through the sale of 2 years and Rs44.061bn through the sale of 3-year quarterly PIB-FRR quarterly.

The total amount of Rs95.91bn raised through PIB-FRR quarterly includes Rs90bn raised through competitive bids and the remaining Rs5.91bn through non-competitive bids.

Additionally, Rs195.369bn was raised through the 5-year PIB-FRR semiannual, while Rs50bn was raised through the 10-year semiannual bond.

The total sum raised through 5-year and 10-year semiannual bonds represents Rs230.5bn raised by SBP through competitive bids and the remaining Rs13.869bn raised through non-competitive bids.

The cut-off price for the 2-year and 3-year PIB-FRR quarterly was Rs98.9285 and Rs97.8023 respectively.

While for the PIB-FRR semiannual, the cutoff was Rs96.4726 for the 5-year bond and for the 10-year one it stood at Rs90.0084

The settlement date for the successful bids is November 02, 2023.

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

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

To note, SBP in the last auction held on October 18 sold PIBs-FRR worth Rs586.88bn for 2, 3, 5 and 10 years against a target of Rs600bn.

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