The State Bank of Pakistan on Wednesday conducted auction of Pakistan Investment Bonds (PIBs) and accepted bids worth Rs 25.094 billion with a realised amount of Rs 23.95 billion. The SBP received Rs 33.069 billion worth bids for the sale of 3-, 5-, 10- and 20-year. However, it accepted bids for the sale of 3-, 5-, and 10-year long term investment bonds while bids for 20-year bond were rejected.
A cut-off yield of 12.5890 percent was set for 3-year PIBs with a realised amount of Rs 5.163 billion. Bids worth Rs 11.735 billion were accepted for the 5-year long term investment bond with a cut-off yield of 12.9389 percent and a cut-off yield of 13.1999 percent was set for 10-year PIB with an auction amount of Rs 7.051 billion.
The SBP issued following: Auction of Pakistan Investment Bonds for 3, 5, 10, and 20 years maturity was held on March 14, 2012 with coupon rates as 11.25%, 11.50%, 12.00%, and 13.00% for 3, 5, 10 and 20 years maturity respectively and settlement date of March 15, 2012. The bid summary for 3, 5, 10 and 20 years maturity is as following:
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(Amount in PKR million)
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Face Realised Accrued Total Price Range
Tenor Value Amount Interest Realised (per Rs 100)
Amount
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03 Years 7,900.000 7,687.924 63.135 7,751.059 97.63 - 96.82
05 Years 15,425.000 14,706.620 126.013 14,832.633 95.68 - 94.88
10 Years 9,744.500 9,152.424 83.068 9,235.491 95.14 - 93.06
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20 Years N O B I D R E C E I V E D
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Total 33,069.500 31,546.968 272.216 31,819.183
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Out of the above bids, the accepted bids were as under:
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(Amount in PKR million)
Face Realised Accrued Total Cut-off Effective
Tenor Value Amount Interest Realised Cut-off Price Yield Weighted
Amount (per Rs 100) (YTM) Average
%p.a. Yield %p.a.
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03 Years 5,300.000 5,163.434 42.357 5,205.791 97.25 12.5890 12.5027
05 Years 12,300.000 11,735.460 100.484 11,835.944 95.24 12.9389 12.8857
10 Years 7,494.500 7,051.714 63.888 7,115.601 93.61 13.1999 13.1053
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20 Years N O B I D R E C E I V E D
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Total 25,094.500 23,950.608 206.729 24,157.336
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