SBP raises Rs439.27bn against a target of Rs280bn through PIB-PFL auction

September 19, 2023 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Pakistan Investment Bond - Floating Rate (PFL)  worth Rs439.27 billion for 2, 3 and 5 years against a target of Rs280bn.

SBP received bids worth Rs1.19 trillion for semiannual PIB and Rs138.7bn for quarterly PIB, out of which the central accepted Rs409.08bn and Rs30.18bn respectively.

The central bank picked up Rs30.81bn through the sale of quarterly PIB-PFL.

Out of the total sum of Rs30.81bn, Rs13.70bn was raised through the sale of 2-year quarterly PIB and Rs16.48bn for 3 3-year quarterly PIB.

This amount of Rs30.81bn includes Rs17.5bn raised through competitive bids and the remaining Rs12.68bn through non-competitive bids.

The remaining Rs409.08bn was raised through the 5-year semiannual PIB-PFL, with no bids received for the 10-year semiannual bond.

This sum represents Rs403.4bn raised by SBP through competitive bids and the remaining Rs5.68bn raised through non-competitive bids.

The cut-off price for the 2-year and 3-year PIB-PFL quarterly was Rs98.6068 and Rs97.3010 respectively.

While for the semiannual PIB, the cutoff was Rs95.4322.

The settlement date for the successful bids is September 21, 2023.

It is pertinent to note that the target during the three months (August-October) of FY24, through the auction of semiannual PIB-PFL and quarterly PIB-PFL to raise Rs720bn and Rs480bn respectively.

The target for the review period for the semiannual PIB-PFL was to raise Rs120bn through the sale of 5-year and 10-year PIB for Rs60bn respectively.

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

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