KARACHI: The federal government on Wednesday borrowed some Rs 12.5 billion through sale of long-term security papers. The State Bank of Pakistan (SBP) conducted the auction for sale of 3, 5, 10, 15 and 20 years Pakistan Investment Bonds (PIBs) on Dec 09, 2020 with settlement date of Dec 10, 2020.

Bids amounting to Rs 66.298 billion with realized value of Rs 64 billion were received for sale of PIBs. Most of bids were submitted for 3- and 5-year long term investment bonds. Out of received bids, the federal government rejected all bids of 5- and 10-year PIBs and accepted bids amounted to Rs 12.5 billion with realized amount of Rs 13.176 billion for sale of 3-, 15 and 20-year bonds.

Some Rs 1.5 billion were raised through auction of 3-year bond at 8.2400 percent cut-off yield. An amount of Rs 3 billion and Rs 8 billion was borrowed at 10 percent and 10.58 percent, respectively.

Copyright Business Recorder, 2020