SBP raises Rs820.85bn through PIB-PFL auction

November 29, 2023 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Pakistan Investment Bond – Floating Rate (PIB-PFL) semiannual and quarterly worth Rs820.85 billion for 2, 3, 5 and 10 years against a target of Rs280bn.

SBP received bids worth Rs884.41bn for PIB-PFL semiannual and Rs70bn for PIB-PFL quarterly, out of which the central bank accepted Rs769.723bn and Rs51.126bn respectively.

The amount raised through PIB-PFL quaterly comes from the 3-year tenure bond. While no bids were received for the 2-year quaterly PIB.

The total amount of Rs51.126bn raised through PIB-PFL quarterly includes Rs50bn raised through competitive bids and the remaining Rs1.126bn through non-competitive bids.

Additionally, Rs319.5bn was raised through the 5-year PIB-PFL semiannual, while Rs450.226bn was raised through the 10-year semiannual bond.

The total sum raised through 5-year and 10-year semiannual bonds represents Rs746.181bn raised by SBP through competitive bids and the remaining Rs23.543bn raised through non-competitive bids.

The cut-off price for the 3-year PIB-PFL quarterly was Rs98.1276.

While for the PIB-PFL semiannual, the cutoff was Rs97.0617 for the 5-year bond and for the 10-year one it stood at Rs94.6545.

The settlement date for the successful bids is November 30, 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 November 15 sold PIBs-PFL worth Rs496.37bn for 2, 3, 5 and 10 years against a target of Rs280bn.

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