SBP raises Rs53bn through PIB-PFL auction

December 28, 2023 (MLN): The State Bank of Pakistan (SBP) conducted an auction yesterday in which it sold Pakistan Investment Bond – Floating Rate (PIB-PFL) semiannual and quarterly worth Rs53.15 billion for 2, 3, 5 and 10 years against a target of Rs280bn.

SBP received bids worth Rs257.65 bn for PIB-PFL semiannual and Rs18bn for PIB-PFL quarterly, out of which the central bank accepted Rs51.12bn and Rs2.03bn respectively.

The amount raised through PIB-PFL quarterly comes from the 3-year tenure bond as the central bank did not accept bids for the 2-year quarterly PIB.

The total amount of Rs2.03bn raised through PIB-PFL quarterly includes Rs1bn raised through competitive bids and the remaining Rs1.03bn through non-competitive bids.

Additionally, Rs31.27bn was raised through the 5-year PIB-PFL semiannual, while Rs19.85bn was raised through the 10-year semiannual bond.

The total sum raised through 5-year and 10-year semiannual bonds represents Rs49.15bn raised by SBP through competitive bids and the remaining Rs1.97bn raised through non-competitive bids.

The cut-off price for the 3-year PIB-PFL quarterly was Rs 98.1126.

While for the PIB-PFL semiannual, the cutoff was Rs96.3392 for the 5-year bond and for the 10-year one it stood at Rs93.9849.

The settlement date for the successful bids is December 28, 2023.

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

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

The central bank, in the last auction held on December 13 sold PIBs-PFL worth Rs182.82bn for 2, 3, 5 and 10 years against a target of Rs280bn.

The cut of price stood at  Rs98.0858, Rs96.2500 and Rs 93.8579 for the 3-year PIB-PFL quarterly, 5-year and 10-year PIB-PFL semiannual respectively.

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