Pakistan Investment Bond (PIB), formerly known as Federal Investment Bond, is a government-issued debt security of Pakistan with maturity exceeding one year.[1][2]
History
editPakistan Investment Bond was launched in 1992 as Federal Investment Bond.[3][4]
In December 2001, the Government of Pakistan introduced Pakistan Investment Bonds (PIBs), replacing Federal Investment Bonds, with maturities of three, five, and ten years.[5][6] The primary purpose of these scripless bonds was to establish a long-term yield curve to assist corporate entities in pricing their debt instruments.[5] These scripless bonds carry a fixed coupon rate, while their yields are determined by market supply and demand.[5]
By the end of 2001, PIBs had become a benchmark for corporates to price term finance certificates and facilitated secondary market debt raising.[5]
References
edit- ^ "A boom year for TFCs". DAWN.COM. December 31, 2001.
- ^ Aazim, Mohiuddin (September 24, 2002). "Market forces PIBs yield to fall". DAWN.COM.
- ^ "A weak response". 14 October 2010.
- ^ https://rpc.cfainstitute.org/-/media/documents/article/rf-brief/rfbr-apac-capital-markets-pakistan.pdf
- ^ a b c d "Corporate lending: KIBOR made benchmark". DAWN.COM. February 2, 2004.
- ^ "State Bank sells PIBs worth Rs5 billion". DAWN.COM. November 26, 2001.