SBP sets auction target of Rs.3.59 trillion for the next three months

August 5, 2020 (MLN): The State Bank of Pakistan (SBP) announced the auction calendar for August – October 2020 in which it plans to raise Rs.3.59 trillion through the sale of Government Securities.

The amount maturing during the next three months is Rs.3.204 trillion showing a net borrowing by the government of Rs.385.40 billion.

The SBP plans to auction Rs.2.30 trillion in short term Market Treasury Bills (MTB), Rs.420 billion in Fixed Rate Pakistan Investment Bonds (PIBs), Rs.720 billion in Floating Rate PIBs (PIBFRR), Rs.90 billion in Variable Rental Rate GOP Ijara Sukuk and Rs.60 billion in Fixed Rental Rate GOP Ijara Sukuk.

The 3 Year Fixed Rate PIB will be a fresh issue with the coupon rate slashed from 9 to 7 percent, 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.

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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