SBP to raise Rs.4.25 trillion from Government Securities in Next 3 Months

October 8, 2019 (MLN): The State Bank of Pakistan (SBP) released the auction calendar for the final quarter of CY19, in which it aims to raise Rs.4.25 trillion from the auction of Market Treasury Bills (MTB) and Pakistan Investment Bonds (PIB).

The maturing amount during the period Oct-Dec is Rs.4.736 trillion, which indicates a net retirement of Rs.486.77 billion by the government.

The SBP plans to raise Rs.3.80 trillion from the auction of short term T-Bills and Rs.450 billion from longer term PIBs.

The amount to be raised from PIBs is further divided into two categories, i.e. fixed and floating bonds. The SBP is targeting Rs.300 billion from the fixed rate bonds of 3, 5, 10 and 20 years while Rs.150 billion will be raised through floating rate bonds of 10 Years.

The Fixed Rate Bonds to be issued will be the re-opening of the recently issued bonds of Sep 19, 2019 while the Floating rate bond will be from August 22, 2019.

The Coupon Rate on the 10 year floating rate bond is 14.6889% while the coupon rates of the fixed rate bonds are 9.00% (3Y), 9.50% (5Y), 10.00% (10Y) and 11.00% (20Y).

A breakup of the maturing amount shows, T-Bills worth Rs.4.437 trillion are maturing during the period while PIBs worth Rs.290.21 billion are maturing in Fixed Rate bonds and Rs.9.40 in Floating rate bonds.

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