The total prize pool to be raffled out this year for those who availed of the government’s premyo bonds sale has been increased following the success of the issuance, the Department of Finance (DOF) said.
The DOF said in a statement over the weekend the total prize was increased from the initial P3 million to P4.5 million to be raffled out quarterly.
Instead of one winner of P1 million, 10 winners of P100,000 and 50 winners of P20,000 per quarter, the DOF said there will be more winners: one winner of P1 million, 15 winners of P100,000 and 100 winners of P20,000 per quarter.
From 61 winners, there will now be a total of 116 winners per draw.
Non-cash rewards in the form of condominium units and a house and lot will also be given away.
Winners will receive these rewards net of all applicable taxes, fees and charges.
The government earlier reported it has successfully raised P4.961 billion from the first-time sale of premyo bonds, or over 65 percent higher than the initial issue size of P3 billion.
The three-week-long offer period of premyo bonds was met with remarkably strong demand from the investing public, including individuals and eligible institutions that make investments on behalf of their individual members, according to the Bureau of the Treasury (BTr).
The DOF said investors who were previously unbanked, without access to financial services and vulnerable to predatory lending practices, opened bank deposit accounts to participate in the premyo bonds.
According to the BTr, as of December 13, more than 1,700 new bank accounts were opened.
The DOF said this partial figure indicates how the premyo bonds and similar products can contribute to financial inclusion in the country by encouraging unbanked Filipinos to start saving and investing.
“In advanced economies, the capital markets are as deep-rooted as the economy is inclusive,” Carlos Dominguez, DOF secretary, said in the statement about the issuance.
“Regardless of what their day jobs are, ordinary citizens help drive up the savings and investment rates by participating in financial products. The man-on-the-street is involved in market decisions that make the economy what it is,” he added.
Dominguez pointed out this type of bond float now forms part of the government’s proactive financing strategy and supports President Duterte’s goal of financial inclusion for all Filipinos.
The DOF said of all online transactions, more than 44 percent were investments of P5,000 and below, indicating that the premyo bonds successfully reached retail investors.
Those who purchased the premyo bonds will earn three percent per annum to be paid quarterly for one year.
“The premyo bonds were intended to build on the momentum from the recent issuances of Retail Treasury Bonds, or RTBs, in which we saw an increasing trend of participation from individual investors. By designing the premyo bonds to include a cash and non-cash reward mechanic, our aim was to entice more individuals and institutions to directly invest in government securities,” Rosalia de Leon, national treasurer, said in the same DOF statement.
“By way of a proactive financial literacy campaign and enhancing access via over-the-counter and online channels, we hope to promote financial inclusion by educating investors not only about the economics of smart investing, but also about our individual roles as Filipinos in contributing to nation building by participating in government securities,” De Leon added.
Proceeds from the premyo bonds will help fund the country’s health and educational programs, among others, the DOF said.
