SBP raises Rs458.5bn through PIB-PFL auction

May 15, 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 Rs458.53 billion for 5 and 10 years against a target of Rs280bn.

The cut-off price for the 5-year PIB-PFL semiannual stood at Rs96.1823, while for the 10-year one, it stood at Rs94.2124.

SBP received bids worth Rs1.33 trillion for PIB-PFL semiannual and Rs638.2m for PIB-PFL quarterly. Out of these, the central bank accepted Rs458.53bn for the semiannual floaters, while none were accepted for the quarterly PIB.

The settlement date for the successful bids is May 16, 2024.

The amount raised through PIB-PFL semiannual comes from the sale of 5-year and 10-year semiannual PIBs worth Rs381.78bn and Rs76.75bn, respectively.

The total sum raised through 5-year and 10-year semiannual bonds represents Rs438bn raised by SBP through competitive bids and Rs20.53bn 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 Rs120bn with the sale of 2-year and 3-year PIB-FRF, Rs60bn each.

To note, the central bank in the last auction held on April 30, 2024 sold PIBs-PFL worth Rs194bn against a target of Rs280bn.

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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