The Bureau of the Treasury (BTr) has raised a total of P457.8 billion from its five-year retail treasury bonds (RTBs) offering after it closed the offer period for the said retail securities Monday.
Of the said amount, P120.8 billion was awarded during the rate-setting auction last February 15, while an additional P337 billion was added throughout the two-week offer period.
The RTB is set to be settled on March 4, 2022, with a coupon rate of 4.875 percent.
“By our funding activities in the domestic space, we are shielding our debt portfolio from volatility in the global financial markets, all while taking advantage of the commitment of the Bangko Sentral ng Pilipinas for supporting the country’s economic recovery,” Rosalia de Leon, national treasurer, said in a statement yesterday.
The RTB was made available for as low as P5,000 through the traditional over-the-counter placement in bank branches, as well as digital channels such as the BTr’s RTB online ordering facility, Bonds.PH mobile application and the Overseas Filipino Bank and Landbank mobile banking apps.
The BTr said proceeds from the issuance will help the country respond to the challenges posed by the pandemic and will support various programs for economic resiliency and recovery.
The Development Bank of the Philippines and Land Bank of the Philippines are the joint lead issue managers for the said RTB offering.
They are joined by BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., Security Bank Capital Corp. and Union Bank of the Philippines as joint issue managers.
Meanwhile, the BTr has fully rejected bids for the three-year treasury bonds during the coupon-setting auction yesterday.
“Market demanding large premium to part with cash over expectation of higher inflation from spillover effects following escalating tension in Ukraine and forthcoming Fed rate hike with 50 basis points still on the table,” de Leon said.
Demand for the rejected securities amounted to P46.26 billion versus the P35 billion offering.
Had a full award been made, the coupon rate for the fresh IOUs would have been 4.375 percent.
In the secondary market, the latest Bloomberg Valuation Service rate for the same tenor is 3.7984 percent.
