SBP raises Rs421bn through PIB-PFL

May 29, 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 worth Rs421 billion against a target of Rs220bn.

The cut-off price for the 5-year PIB-PFL semiannual stood at Rs96.5929, while for the 10-year bond, it stood at Rs94.4729.

SBP received bids worth Rs1.09 trillion for PIB-PFL semiannual and Rs46.5bn for PIB-PFL quarterly. Out of these, the central bank accepted Rs421bn for the semiannual floaters, while none were accepted for the quarterly PIB.

The settlement date for the successful bids is May 30, 2024.

The amount raised through PIB-PFL semiannual comes from the sale of 5-year and 10-year semiannual PIBs worth Rs234.49bn and Rs186.5bn, respectively.

The total sum raised through 5-year and 10-year semiannual bonds represents Rs398.5bn raised by SBP through competitive bids and Rs22.49bn 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 2-year and 3-year PIB-FRF.

To note, the central bank in the last auction held on May 15, 2024 sold PIBs-PFL worth Rs458.5bn against a target of Rs220bn.

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

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