BTr raises $1.26B via retail dollar bonds

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The Bureau of the Treasury (BTr) has successfully raised $1.26 billion from its 5.5-year retail dollar bond (RDB) offering after the offer period ended last Friday.

The amount generated is higher than the initial $1 billion eyed by the government amid strong interest in the retail issuance.

“In the auction, we were able to raise $611.2 million, but the total bids submitted was about $636.2 million. For the (rest of the) offer period, we were able to raise an additional $650 million, bringing it to $1.26 billion,” Erwin Sta. Ana, deputy treasurer of the Philippines, said in a press briefing last Friday.

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“I think this is a very good turnout considering the current market conditions. And the fact that we were able to upsize from the initial target of $1 billion is actually a very good signal,” Sta. Ana added.

The issue date of the government’s second onshore RDB offer is on October 11.

The gross interest rate of the RDB is 5.75 percent per annum that is payable every quarter until its maturity in 2029.

The RDBs were made available to retail investors at a minimum of $200, making it a more accessible financial instrument than traditional US dollar bonds.

In October 2021, the Philippine government raised $1.593 billion, or around P80.83 billion, through the country’s first-ever onshore RDB offering.

The BTr is also targeting to issue the Republic’s maiden Sukuk bonds before the year ends. – Angela Celis

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