SBP raises Rs587bn through PIB-PFL auction

October 18, 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 Rs586.88 billion for 2, 3, 5 and 10 years against a target of Rs600bn.

SBP received bids worth Rs689.78bn for PIB-FRR semiannual and Rs319.45n for PIB-FRR quarterly, out of which the central bank accepted Rs453.95bn and Rs132.935bn respectively.

The central bank picked up Rs64.241bnn through the sale of 2-year and Rs68.694bn through the sale of 3-year quarterly PIB-FRR quarterly.

This total amount of Rs132.935bn includes Rs123.95bn raised through competitive bids and the remaining Rs8.985bn through non-competitive bids.

Additionally, Rs343.849bn was raised through the 5-year PIB-FRR semiannual, while Rs100.1bn raised through the 10-year semiannual bond.

The total sum raised through 5-year and 10-year semiannual bond represents Rs435.125bn raised by SBP through competitive bids and the remaining Rs18.824bn raised through non-competitive bids.

The cut-off price for the 2-year and 3-year PIB-FRR quarterly was Rs98.7681 and Rs97.5953 respectively.

While for the PIB-FRR semiannual, the cutoff was Rs95.9832 for the 5-year bond and Rs93.6202 for the 10-year bond.

The settlement date for the successful bids is October 19, 2023.

To note, the target for the PIB-FRR semiannual was to raise Rs300bn through the sale of 5-year and 10-year PIB, Rs150bn each.

In the case of PIB-FRR quarterly, it was to raise Rs300bn with the sale of 2-year and 3-year PIB-FRF, Rs150bn each.

To note, SBP in the last auction held on October 04 sold PIBs-FRR worth Rs518.36 billion for 2, 3, 5 and 10 years against a target of Rs280bn.

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