SBP raises Rs353bn through PIB-PFL auction

April 17, 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 Rs353.23 billion for 5 and 10 years against a target of Rs220bn.

The cut-off price for the 5-year PIB-PFL semiannual stood at Rs95.9376, while for the 10-year one, it stood at Rs93.8167.

SBP received bids worth Rs537.6bn for PIB-PFL semiannual and Rs16.88bn for PIB-PFL quarterly. Out of these, the central bank accepted Rs353.23bn for the semiannual floaters, while none were accepted for the quarterly PIB.

The settlement date for the successful bids is April 18, 2024.

The amount raised through PIB-PFL semiannual comes from the sale of 5-year and 10-year semiannual PIBs worth Rs350.83bn and Rs2.4bn, respectively.

The total sum raised through 5-year and 10-year semiannual bonds represents Rs343.8bn raised by SBP through competitive bids and Rs9.43bn raised through non-competitive bids.

The target for the PIB-PFL semiannual was to raise Rs160bn through the sale of 5-year and 10-year PIB, Rs80bn each.

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

To note, the central bank in the last auction held on April 03, 2024 sold PIBs-PFL worth Rs5.4bn against a target of Rs200bn.

The cut-off price stood at 95.8364 and 93.5557 for the 5-year and 10-year PIB-PFL semiannual.

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

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