KARACHI, Dec 7: For the first time PIBs of 30 years maturity will be sold in the auction to be held on December 21, by the State Bank.

The State Bank invited bids for the sale of Pakistan Investment Bonds (PIBs) of 3, 5, 10, 15, 20 and 30 years maturity.

However, the target for the sale of PIBs is just Rs20 billion. Analysts said that the coupon rates being offered were not attractive, while the investment in long-term bonds, like 20 and 30 years of maturity, is practically not possible for the investors.

“Banks have been facing acute shortage of long-term deposits and the current trend shows that the investors are not ready to even engage money for more than one year,” said an analyst adding that the target amount set by the SBP was realistic in the wake of poor long-term deposits.

The coupon rates on 3, 5, 10, 15, 20 and 30 years PIBs are 9.10, 9.30, 9.60, 10, 10.50 and 11 per cent, respectively.