The Bureau of the Treasury (BTr) has raised an initial P221.22 billion from its retail treasury bonds (RTB) price-setting auction, with the government expecting to generate more during the rest of the offer period.
The three-year RTBs posted strong demand of P284.18 billion, more than nine times the nominal principal amount of P30 billion.
The coupon rate for the retail offering is at 2.375 percent, 20.6 basis points (bps) higher than the previous average for the same tenor of 2.169 percent, which was fetched during the regular treasury bonds auction in December.
The yield however is 200 bps below the 4.375 percent coupon rate recorded during the BTr’s offer for three-year RTBs in February last year.
Rosalia de Leon, national treasurer, said in a Viber message to reporters yesterday the strong demand for the RTBs was brought by “oozing liquidity,” and amid “flight to safe haven.”
“Better yield than time deposit. Safe and low risk. Biggest reward is contributing to recovery and nation building,” de Leon said.
The public offer period will run from February 9 to March 4, or until any earlier date within the offer period as determined by the BTr. The settlement date will be on March 9.
“(We expect) more retail during the offer period,” de Leon said.
The BTr has also invited eligible bond holders to submit offers to exchange their holdings for the three-year RTBs.
“Good rate to encourage holders to swap,” de Leon said.
The RTBs will be sold in minimum denominations of P5,000 and integral multiples thereof.
Selling agents for the three-year RTBs include the Asia United Bank, Australia and New Zealand Banking Group Ltd., Banco de Oro Unibank Inc., BDO Capital and Investment Corp., BPI Capital Corp., China Banking Corp., Citibank N.A., CTBC Bank (Philippines) Corp., 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., Security Bank Corp., Standard Chartered Bank, The Hongkong and Shanghai Banking Corp. Ltd., and Union Bank of the Philippines.
Investors may also order and purchase the new subscriptions of RTBs through the following online channels: the BTr website, BONDS.PH mobile app, and the Overseas Filipino Bank mobile banking app.
In August last year, the BTr raised a record-high amount of P516.3 billion for RTBs, then with a tenor of five years. (A. Celis)