SBP raises Rs518bn through PIB-PFL auction

October 04, 2023 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Pakistan Investment Bond – Floating Rate (PIB-FRR) semiannual and quarterly worth Rs518.36 billion for 2, 3, 5 and 10 years against a target of Rs280bn.

SBP received bids worth Rs1.08 trillion for PIB-FRR semiannual and Rs373.61bn for PIB-FRR quarterly, out of which the central bank accepted Rs430.9bn and Rs87.46bn respectively.

The central bank picked up Rs27.56bn through the sale of 2-year and Rs59.89bn through the sale of 3-year quarterly PIB-FRR quarterly.

This amount of Rs87.45 billion includes Rs73bn raised through competitive bids and the remaining Rs14.45bn through non-competitive bids.

The remaining Rs425.9bn was raised through the 5-year PIB-FRR semiannual, with only Rs5bn raised through the 10-year semiannual bond.

This sum represents Rs420bn raised by SBP through competitive bids and the remaining Rs10.9bn raised through non-competitive bids.

The cut-off price for the 2-year and 3-year PIB-FRR quarterly was Rs98.7658 and Rs97.6264 respectively.

While for the PIB-FRR semiannual, the cutoff was Rs96.0989 for the 5-year bond and Rs93.4369 for the 10-year bond.

The settlement date for the successful bids is October 05, 2023.

The target for the PIB-FRR semiannual was to raise Rs120bn through the sale of 5-year and 10-year PIB, Rs60bn each.

In the case of PIB-FRR quarterly, it was to raise Rs160bn with the sale of 2-year and 3-year PIB-FRF, Rs80bn each.

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