The State Bank of Pakistan on Wednesday conducted auction of Pakistan Investment Bonds (PIBs) and accepted bids worth Rs 41.2 billion with a realised amount of Rs 38.31 billion. The SBP received Rs 67.217 billion with a realised value of Rs 62.233 billion worth bids for the sale of 3-, 5-, 7-, 10-, 15-, 20- and 30-year bonds.
However, the SBP accepted bids for the sale of 3-, 5-, 10- and 15-year long-term investment bonds. Bids for the sale of 7-, 20- and 30-year bond were completely rejected. A cut-off yield of 13.4767 percent was set for 3-year PIBs with an accepted amount of Rs 9.97 billion. Bids worth Rs 10.691 billion were accepted for the 5-year long term investment bond with a cut-off yield of 13.4984 percent and a cut-off yield of 13.5094 percent set for 10-year PIB with an auction amount of Rs 18.3 billion. Similarly, 15-year long term paper was sold at 13.5011 percent with an amount Rs 2.23 billion.
The SBP issued the followed press release:
Auction of Pakistan Investment Bonds for 3-, 5-, 7-, 10-, 15-, 20- and 30 years maturity was held on August 17, 2011 with coupon rates as 11.25%, 11.50%, 11.75%, 12.00%, 12.50%, 13.00% and 13.75% for 3-, 5-, 7-, 10-, 15-, 20- and 30 years maturity respectively and settlement date of August 18, 2011. The bid summary for 3-, 5-, 7-, 10-, 15-, 20- and 30 Years maturity is as follows:
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(Amount in PKR milli
Tenor Face Realised Accrued Total Realised Price Range
Value Amount Interest Amount (per Rs 100)
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03 Years 11,254.000 10,661.721 - 10,661.721 94.82-94.38
05 Years 12,571.800 11,686.720 - 11,686.720 93.23-92.59
07 Years 300.000 276.345 - 276.345 92.23-91.93
10 Years 40,405.400 37,080.389 - 37,080.389 92.24-90.89
15 Years 2,386.300 2,233.798 - 2,233.798 93.63-93.30
20 Years 150.000 143.925 - 143.925 95.95
30 Years 150.000 150.600 - 150.600 100.40
Total 67,217.500 62,233.498 - 62,233.498
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Out of the above bids, the accepted bids were as under:
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(Amount in PKR million)
Tenor Face Realised Accrued Total Cut-off Price Cut-off Effective
Value Amount Interest Realised (per Rs 100) Yield Weighted
Amount (YTM) Average
%p.a. Yield %p.a
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03 Years 9,975.000 9,451.925 - 9,451.925 94.65 13.4767 13.4310
05 Years 10,691.500 9,941.348 - 9,941.348 92.90 13.4984 13.4737
07 Years B I D S R E J E C T E D
10 Years 18,306.100 16,823.510 - 16,823.510 91.85 13.5094 13.4993
15 years 2,236.300 2,093.848 - 2,093.848 93.63 13.5011 13.5011
20 Years B I D S R E J E C T E D
30 Years B I D S R E J E C T E D
Total 41,208.900 38,310.631 - 38,310.631
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1. Non-competitive bids. (TBA)
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(Amount in PKR million)
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Tenor Face Value
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03 Years -
05 Years -
07 Years -
10 Years -
15 Years -
20 Years -
30 Years -
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Total
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2. Short Selling (TBA)
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(Amount in PKR million)
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Tenor Face Value
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03 Years -
05 Years -
07 Years -
10 Years -
15 Years -
20 Years -
30 Years -
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Total
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