The Bureau of the Treasury (BTr) has raised an initial P162.72 billion during the price-setting auction of the 5.5-year retail treasury bonds (RTBs) yesterday, the government’s first offering under the Marcos Jr. administration.
The demand for the retail IOUs reached P225.32 billion, more than seven times the minimum principal amount of P30 billion.
The coupon rate for the RTBs is 5.75 percent, 31.6 basis points (bps) higher than the 5.434 percent Bloomberg Valuation Service reference rate for the five-year tenor in the previous day. In comparison to the six-year tenor, the rate is also 11 bps higher than the secondary market rate of 5.64 percent.
“This issuance serves as an important component of the national government’s fundraising efforts to finance our development programs aimed at building a sustainable, inclusive and broad-based economy,” Finance Secretary Benjamin Diokno said at the launching program of the bond offering.
“These relatively higher yielding government securities strengthen financial inclusion and encourage broader participation in the capital market,” he added.
RTBs are sold in minimum denominations of P5,000 and integral multiples thereof.
The government is also inviting eligible bond holders to exchange their holdings maturing
September and December this year and February next year for the new RTBs.
The public offer period will run until September 2, 2022, or may end at an earlier date as determined by BTr.
The RTBs’ issue date will be on September 7.
“For this RTB issuance, we have adopted the theme, Tulong Sulong sa Pagbangon, to support the new administration’s 8-point socioeconomic agenda,” Rosalia de Leon, national treasurer, said during the launch.
“We look forward to another round of strong participation from our RTB afficionados, here and abroad,” she added.
Diokno said RTBs have been the strongest performing financial instrument in the treasury’s portfolio of bond offerings in the last two decades. Since the first issuance in 2001, the government has raised over P4.37 trillion from these offerings, he added.With the consistently strong reception from both local and overseas investors, the RTBs now account for around 35 percent of BTr’s outstanding government securities.
Selling agents of the 5.5-year RTBs are Asia United Bank, BDO Unibank Inc., Bank of Commerce, BDO Capital and Investment Corp., BPI-Capital Corp., China Banking Corp., Citibank, Development Bank of the Philippines, East West Banking Corp., First Metro Investment Corp., ING Bank, Land Bank of the Philippines, Metropolitan Bank & Trust Company, Philippine Bank of Communications, Philippine National Bank, Rizal Commercial Banking Corp., Robinsons Bank Corp., Security Bank Corp., Standard Chartered Bank and Union Bank of the Philippines.
Orders can also be placed via the Bonds.PH app, Overseas Filipino Bank Mobile Banking app, LANDBANK iAccess and the treasury’s Online Ordering Facility.
