The Bureau of the Treasury (BTr) has raised P463.3 billion from its retail treasury bond (RTB) sale as the offer period ended yesterday, according to Rosalia de Leon, national treasurer.
De Leon told reporters in a Viber message yesterday the total issue size of the three-year RTBs consisted of P411.8 billion in new subscriptions and P51.5 billion more from the bond exchange program.
RTBs are sold in minimum denominations of P5,000 and integral multiples thereof.
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.
“(The results of the) RTB (offering) demonstrates increasing awareness of retail investors on government securities not only as (a) safe and convenient investment particularly with easy access with mobile applications, (but) more so, (as a) way of contributing to a strong and inclusive economic rebound,” de Leon said.
The public offer period ran from February 9 to March 4. The settlement date will be on March 9.
During the price-setting auction, the BTr raised an initial P221.22 billion. It posted strong demand of P284.18 billion, more than nine times the nominal principal amount of P30 billion.
An additional aggregate amount of P242.1 billion, sourced from new subscriptions and bond exchange, was raised during the public offer period.
This is the third time an RTB offering was coupled with an exchange offer. The BTr said that the bond exchange was well-received, with 12.9 percent of the outstanding amount of the eligible bonds swapped for the three-year RTB bonds.
Investors were also able to 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.
A total of P55.6 million was raised from the online and mobile channels.
“As we endeavor to win back our growth momentum from the clutches of the pandemic, we turn to RTBs as our curtain raiser in what is shaping to be another busy year for fundraising,” de Leon said.
“We have introduced further refinements to our online selling channels, at the same time expanding our partnership to a greater number of banks, with the intention of extending further our reach, bearing in mind the large population of Filipinos working abroad,” she added.
The BTr said proceeds from the issuance will form part of the government’s proactive financing strategy and will partially fund the 2021 budget and support programs for economic recovery and strengthening of the country’s health care system.