SBP raises Rs64bn through PIB-PFL

July 10, 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 Rs64.24 billion for 5 and 10 years against a target of Rs210bn.

The cut-off price for the 5-year PIB-PFL semiannual stood at Rs96.5571, while for the 10-year bond, it stood at Rs94.4829.

SBP received bids worth Rs214.4bn for PIB-PFL semiannual and Rs36bn for PIB-PFL quarterly. Out of these, the central bank accepted Rs64.24bn for the semiannual floaters, while none were accepted for the quarterly PIB.

The settlement date for the successful bids is July 11, 2024.

The amount raised through PIB-PFL semiannual comes from the sale of 5-year and 10-year semiannual PIBs worth Rs28.24bn and Rs36bn, respectively.

The total sum raised through 5-year and 10-year semiannual bonds represents Rs60.4bn raised by SBP through competitive bids and Rs3.84bn raised through non-competitive bids.

The target for the PIB-PFL semiannual was to raise Rs200bn through the sale of 5-year and 10-year PIB, Rs100bn each.

In the case of PIB-PFL quarterly, it was to raise Rs10bn with the sale of 2-year and 3-year PIB-FRF.

To note, the central bank in the last auction held on June 26, 2024 sold PIBs-PFL worth Rs107bn against a target of Rs210bn.

The cut-off price stood at 96.5472 and 94.484 for the 5-year and 10-year PIB-PFL semiannual bonds.

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