SBP raises Rs65.25bn through PIB-PFL auction

March 06, 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 Rs65.25 billion for 5 and 10 years against a target of Rs70bn.

The cut-off price for the 5-year PIB-PFL semiannual stood at Rs95.8706, while for the 10-year one, it stood at Rs93.6522.

SBP received bids worth Rs190.44bn for PIB-PFL semiannual and Rs11.07bn for PIB-PFL quarterly. Out of these, the central bank accepted Rs65.25bn for the semiannual floaters, while none were accepted for the quarterly PIB.

The settlement date for the successful bids is March 07, 2024.

The amount raised through PIB-PFL semiannual comes from the sale of 5-year and 10-year semiannual PIBs worth Rs34bn and Rs31.25bn, respectively.

The total sum raised through 5-year and 10-year semiannual bonds represents Rs64.25bn raised by SBP through competitive bids and Rs1bn raised through non-competitive bids.

The target for the PIB-PFL semiannual was to raise Rs40bn through the sale of 5-year and 10-year PIB, Rs20bn each.

In the case of PIB-PFL quarterly, it was to raise Rs30bn with the sale of 3-year PIB-FRF.

To note, the central bank in the last auction held on February 21, 2024 sold PIBs-PFL worth Rs6.35bn against a target of Rs100bn.

The cut-off price stood at 95.8557 and 93.6342 for the 5-year and 10-year PIB-PFL semiannual.

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