The Bureau of the Treasury (BTr) has priced its three-year retail treasury bonds (RTB) at 4.375 percent, selling a total of P134 billion.
The government has been issuing RTBs as part of its efforts to support financial inclusion and literacy among Filipinos by making basic investment instruments accessible to the public.
“The marketing and issuance of RTBs is in line with the move of the Republic to encourage the country’s unbanked population to open bank accounts as well as save and invest their money,” the BTr said.
It added that RTBs are generally low risk, allowing investors to earn a fixed interest based on prevailing market rates and are paid quarterly during the term of the bond.
The auction was nearly five times oversubscribed, prompting the committee to raise the acceptance from the initial offering of P30 billion.
This is the 23rd issuance of RTBs by the Philippine government and the first for 2020. It is available to investors at a denomination of P5,000 and is for sale from January 28 to February 6, 2020.
The BTr earlier said it has tapped 20 selling agents for the bond.
“The increasing participation in the RTBs and in the maiden offering of the Premyo Bonds tells us that we are charting the right path in terms of making basic investment products accessible to Filipinos,” said National Treasurer Rosalia de Leon.
“The Republic first launched the RTBs in 2001, and since then, it has not only become a staple fund-raising exercise for the National Government’s priority programs, but has also provided an avenue for the investing public to work together with the government to promote the advancement of the economy,” de Leon added.
Last year, the BTr issued the Premyo Bonds which raised close to P5 billion. The BTr said 90 percent of the investors in the Premyo Bonds were individuals, some of whom had to open a deposit account so they could participate in the offering.
Proceeds from the issuance of RTBs will be used for general budgetary purposes including critical infrastructure projects and social services.
Interested investors in RTBs should have a peso account with selling agent banks accredited by the BTr.
“It is through this Peso bank account that investors will receive their quarterly interest payments and principal amount on maturity,” the BTr said.
To invest, one may approach his or her bank branch of choice or visit the BTr website via its online ordering facility.
The Development Bank of the Philippines and Land Bank of the Philippines serve as joint lead issue managers for the 23rd RTB offering. They are joined by BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. as joint issue managers.
