The announcement said that the tenders for sale of PIBs for 3, 5 and 10 years (Third re-opening of May 19, 2006 issue), 15 and 20 years (Second re-opening of October 31, 2006 issue) and 30 years (First re-opening of December 22, 2006 issue) are invited from the primary dealers on March 5, 2007.
Tenders will be received by the Director, Domestic Markets and Monetary Management Department up to 11:15 am, and will be opened at 11:30 am. Results will be announced the same day. Primary dealers would be required to deposit the amount of accepted bid to the Chief Manager, SBP Banking Service Corporation, (Banks), Karachi, on March 6, 2007.
The coupon rates for PIBs to be sold in the auction are 9.10 percent, 9.30 percent, 9.60 percent (same as of May 19, 2006 issue) for 3, 5 and 10 years respectively; 10.00 percent and 10.50 percent (same as October 31 2006 issue) for 15 and 20 years respectively and 11.00 percent for 30 years maturity (same as December 22, 2006).
Profit will be paid on six-monthly basis. The target for the issue is Rs 15 billion (Rs 3, 3, 3, 2, 2 and 2 billion for 3, 5, 10, 15, 20 and 30 years maturity respectively).
Bids can be rejected without assigning any reason. The investors for 3, 5, and 10 years PIBs will deposit accrued interest from the last coupon date ie, November 19 2006. The investor for 15 and 20 years PIB will deposit accrued interest from the opening date ie, October 31 2006. The investor for 30 years PIB will deposit accrued interest from the opening date ie, December 22, 2006.