October 16, 2020 (MLN): The State Bank of Pakistan (SBP) is set to auction floating rate Pakistan Investment Bonds (PIB) with quarterly coupon payments from October 21, 2020.
According to a revised auction calendar, the floating rate coupon will be indexed to the 3 month weighted average yield from T-Bill auctions.
The SBP revised the auction target of fixed rate PIBs down from Rs.420 billion to Rs.390 billion and the floating rate semi-annual coupon paying PIBs down from Rs.770 billion to Rs.470 billion. However, with the auction target of the quarterly payment bonds set at Rs.360 billion, the total amount has increased to Rs.830 billion in floating rate PIBs.
SBP has increased the auction target for Market Treasury Bills (MTB) from Rs.2.35 trillion to Rs.2.75 trillion, with the maturing amount increasing from Rs.2.949 trillion to Rs.3.494 trillion.
Auction Schedule for MTBs & PIBs
Instrument Type
Old Target
Revised Target
Revised Maturing Amount
MTB
2,350
2,750
3,494.20
PIB (Fixed Rate)
420
390
–
PIB (Floating Rate – Semi Annual)
770
470
–
PIB (Floating Rate – Quarterly)
–
360
–
Total
3,540
3,970
3,494.20
Amounts in Rs Billion.
The State Bank announced that the all floating rate bonds to be issued on October 21 will be fresh issues and they will be re-opened in subsequent auctions.
The first coupon Rates for Floating rate bonds are:
First Coupon Rates %
Tenor
Quarterly
Semi-Annual
3Y
7.1178
7.1854
5Y
7.1178
7.1854
10Y
7.1178
7.1854
* Note: The Auction Figures released by the SBP are inclusive of auctions aready conducted during the month of October.
