February 25, 2018, 9:54 am
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P130B bonds sold

The Bureau of the Treasury (BTr) sold P130 billion worth of five-year retail treasury bonds (RTBs) during the price-setting auction yesterday, more than four times the initial offering, amid strong market demand for the government IOUs.

The government initially announced that the RTB sale will have a minimum offer of P30 billion, however, the auction reflected investor demand as tenders totaled to P191.8 billion for the securities maturing 2022.

“It just demonstrates that there’s still a lot of liquidity in the domestic market, so it also reinforces our plan that our financing has an inward bias, given that we see that we’re oozing with liquidity,” Rosalia de Leon, national treasurer, said after the auction.

The RTBs will be offered to the general investing public at minimum denominations of P5,000 from November 20 to 29.

“(We did not accept the total tenders because) we still have an offer period until the 29th, otherwise (if we accepted the entire amount), we won’t have enough to allocate to our retail investors,” De Leon said.

“We’re hoping that we’ll also have a very strong order book... we started on a very strong note on this one so we still see there’s lot of demand. Given the P191.8 billion you see there, so we still have the P60 billion. But of course we still have to go out and sell the product during our roadshows,” she added.

The auction committee set a coupon rate of 4.625 percent for the five-year RTBs.

Earlier this year, the BTr successfully auctioned P70 billion and was able to raise an additional P111 billion during the public offer period. 

“We have been encouraged by the response of the general investing public when we offered retail treasury bonds back in March to April,” De Leon said. 

“Investing in retail treasury bonds is a way for the public to become more aware of affordable and secure investment options that are available to them,” she added.

The Development Bank of the Philippines and Land Bank of the Philippines are the joint lead issue managers for the RTB offering, and are joined by BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., and SB Capital Investment Corp. as joint issue managers.

“For the 20th offering of retail treasury bonds, we are taking advantage of the added liquidity in the market leading up to the Christmas season. We also know that many Filipinos will have a ‘spend’ mindset during these times, so we want to present them with an investment option that will have multiple returns to them,” De Leon said. 

“The best gift that Filipinos could give to themselves or their loved ones is financial stability, and by investing in retail treasury bonds, they are opening up more economic opportunities for themselves and their families, enabling themselves to rely beyond a single source of income,” she added.

To promote the RTB offering, the BTr will also be holding a series of roadshows in key cities throughout the Philippines from November 20 to 23.
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