The Bureau of the Treasury (BTr) has raised an initial amount of P120.76 billion during the price-setting auction of the five-year retail treasury bonds (RTBs) yesterday.
The demand for the retail IOUs reached P183.44 billion, more than six times the minimum principal amount of P30 billion.
The coupon rate for the RTBs is 4.875 percent, 40.18 basis points higher than the 4.47 percent Bloomberg Valuation Service reference rate in the previous day.
“Auction showed strong interest in RTB. Coupon penciled in rate liftoff and emerging higher inflation risk (on US front),” Rosalia de Leon, national treasurer, told reporters after the auction.
“Hopeful strong participation like before,” de Leon 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 March and July this year for the new RTBs.
The public offer period will run from February 15 to 28, or may end at an earlier date as determined by BTr.
The RTBs’ issue date will be on March 4.
Selling agents of the five-year RTBs are Asia United Bank, BDO Unibank Inc., 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. – Angela Celis
