The Bureau of the Treasury (BTr) has raised an initial P212.72 billion during the price-setting auction of the five-year retail treasury bonds (RTBs) yesterday.
The demand for the retail IOUs reached P272.71 billion, more than nine times the minimum principal amount of P30 billion.
This prompted the BTr to upsize the award in setting the coupon rate.
Sharon Almanza, officer-in-charge treasurer, said during a press conference in Manila the latest RTB is one of the most successful issuances in recent years, as reflected in the strong demand.
“We’re very happy with the result of the auction. Depending on the appetite of the market… we can maybe increase it to (a total of) P400 billion (until the end of the offer period),” Almanza said.
The coupon rate for the RTB is 6.25 percent, higher than the 6.1354 percent Bloomberg Valuation Service reference rate for the five-year tenor in the previous day.
“While the (coupon) is higher than last year, the market environment is different this year, and it’s still one of the lowest in terms of the (premium) that we get from the secondary,” Almanza said.
The issuance due 2029 will be offered from February 13 to 23, although it may end at an earlier date as determined by the BTr.
The RTBs will be sold in minimum denominations of P5,000 and integral multiples thereof.
The BTr is also inviting eligible holders of RTBs set to mature this coming March to submit offers to exchange their bond holdings for the new RTBs.
The issue date for the RTB offer is scheduled on February 28.
Authorized selling agents of the five-year RTBs are Australia and New Zealand Banking Group Ltd., Asia United Bank, BDO Capital and Investment Corp., BDO Unibank Inc., BPI-Capital Corp., China Banking Corp., Citibank, Philippine Bank of Communications, CTBC Bank (Philippines) Corp., Development Bank of the Philippines (DBP), East West Banking Corp., First Metro Investment Corp., The Hongkong and Shanghai Banking Corp Ltd., ING Bank, Maybank Philippines Inc., Metropolitan Bank & Trust Company, Bank of Commerce, Philippine National Bank, Rizal Commercial Banking Corp., Standard Chartered Bank, Security Bank Corp., Sterling Bank of Asia Inc., Land Bank of the Philippines (Landbank) and Union Bank of the Philippines.
Aside from over-the-counter transactions, RTBs can be purchased via the BTr’s Online Ordering Facility for investors who are clients of China Banking Corp., DBP, Landbank and First Metro Securities.
The RTBs are likewise accessible via mobile banking through the Landbank, OFBank and Bonds.PH applications.
The Landbank and DBP were the joint lead issue managers for the RTB offering, with BDO Capital and Investment Corp., BPI Capital Corp., Chinabank Capital Corp., First Metro Investment Corp., PNB Capital and Union Bank of the Philippines as joint issue managers.
Meanwhile, Almanza was also asked about plans for a global bonds offer as it is usually issued during the first quarter of the year.
“We are monitoring the market. We are ready in terms of our approvals and all the necessary regulatory requirements, it’s just a matter of execution when the timing is right,” Almanza said. – Angela Celis
