SBP sets auction target of Rs.3.58 trillion for the next three months

September 8, 2020 (MLN): The State Bank of Pakistan (SBP) announced the auction calendar for September - November 2020 in which it plans to raise Rs.3.58 trillion through the sale of Government Securities.

The amount maturing during the next three months is Rs.3.115 trillion showing a net borrowing by the government of Rs.464.50 billion.

The SBP plans to auction Rs.2.35 trillion in short term Market Treasury Bills (MTB), Rs.420 billion in Fixed Rate Pakistan Investment Bonds (PIBs), Rs.660 billion in Floating Rate PIBs (PIBFRR), Rs.105 billion in Variable Rental Rate GOP Ijara Sukuk and Rs.45 billion in Fixed Rental Rate GOP Ijara Sukuk.

The 3 Year Fixed Rate PIB will be a reopening of Aug 20, 2020 issue, with the remaining 5, 10, 20 year PIBs being the re-opening of Sep 19, 2019 issue while the 15 year PIB will be re-opening of April 16, 2020.

However, the SBP has notified that the 5 year Fixed Rate PIB to be auctioned in October will be a fresh issue and its coupon rate will be announced later.

The 3, 5 and 10 year Floating rate PIB’s will be the reopening of June 18, 2020 issue with the current coupon rate being set at 8.2670% for 3 year, 8.3070% for 5 year and 8.5170% for 10 years.

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