SBP raises Rs344.935bn through PIB-PFL auction

February 06, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Tuesday in which it sold Pakistan Investment Bond – Floating Rate (PIB-PFL) semiannual and quarterly worth Rs344.935 billion for 2, 3, 5 and 10 years against a target of Rs280bn.

SBP received bids worth Rs437.5bn for PIB-PFL semiannual and Rs3.842bn for PIB-PFL quarterly. Out of these, the central bank accepted Rs344.935bn for the semiannual floaters, while none were accepted for the quarterly PIB.

The amount raised through PIB-PFL semiannual comes from the sale of 5-year and 10-year semiannual PIBs worth Rs125.135 and Rs219.8bn, respectively.

The total sum raised through 5-year and 10-year semiannual bonds represents Rs340bn raised by SBP through competitive bids and Rs4.935bn raised through non-competitive bids.

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

The settlement date for the successful bids is February 07, 2024.

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.

In the last auction held on January 24, the central bank sold PIBs-PFL worth Rs293.68bn for 2, 3, 5 and 10 years against a target of Rs280bn.

The cut of price stood at Rs 98.1357, Rs 96.5915 and Rs 94.8122 for the 3-year PIB-PFL quarterly, 5-year and 10-year PIB-PFL semiannual respectively.

When compared with today's cut-off price, it becomes evident that yields have increased, resulting in a slight decrease in the cut-off price.

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