October 25, 2024 (MLN): The State Bank of Pakistan (SBP) has invited bids for the Market Treasury Bills (MTBs) buyback auction scheduled for October 29-30, 2024, with a target of Rs200 billion.
Details of the buyback securities are given below:
No
Issue Date
Maturity Date
Target Amount (in Billions)
1
13-Jun-24
12-Dec-24
50
2
14-Dec-23
12-Dec-24
50
3
27-Jun-24
26-Dec-24
50
4
28-Dec-23
26-Dec-24
50
It is important to note that these T-bills being repurchased are set to mature in December 2024.
In a historic move, SBP on September 30, 2024, conducted the first-ever buyback auction for MTBs in which it repurchased Rs351bn against Rs500bn target.
The second buy-back was held on October 10, 2024, in which the buyback cut-off yield was around 16% for the six- and 12-month papers.
The MTBs Rules 1998 provide for the buyback of MTBs by the Government of Pakistan.
The buyback price of the security will be determined through multiple-price competitive auction process.
All Primary Dealers will be eligible to submit competitive bids in the auctions. Non-competitive bids can also be submitted as per existing instructions.
On settlement date, the bought back securities will be debited from the SGLA of successful bidders while their current accounts will be credited with the accepted price.
Moreover, all other auction rules and procedures will apply to the buyback auctions as defined in various auction related circulars, SBP said.
