BTr sets bigger, better Premyo

    Safe haven. Government intends to sustain the interest of new-found investors from the first premyo bond issuance.

    The Bureau of the Treasury (BTr) has launched its second premyo bonds offer yesterday, with an annual rate of 1.25 percent, on top of which investors will also have the chance to win quarterly cash and non-cash prizes.

    In a virtual event yesterday, Rosalia de Leon, national treasurer, said the government intends to sustain the interest of new-found investors from the first premyo bond issuance by making this new offering “bigger and better.”

    Premyo bonds are interest-bearing securities offered by the government that have corresponding raffle numbers for a chance to win prizes. Each P500 investment entitles the bondholder with one bond unit, which serves as one entry in every quarterly cash rewards draw.

    The second premyo bonds offering has a minimum issue size of P3 billion and has a one-year maturity. It has an offer period of one month, or from November 11 to December 11, which may be cut short by the BTr.

    “First, the purchase of premyo bonds has been made easier now more than ever. We made available more ordering platforms, that anyone with a mobile phone or laptop and internet can take advantage of, in any part of the world,” de Leon said.

    “With the addition of the mobile application, and the launch of the much awaited overseas Filipino bank mobile banking application, we are now able to expand our reach to more Filipinos both locally and abroad with this innovative, secure and convenient delivery channels and bridge the financially excluded,” she added.

    As for the prizes, there will be 50 winners of P20,000, 10 winners of P100,000 and one winner of P1 million per quarter.

    This however only assumes a P3 billion total issue size, as the number of winners will increase depending on the final volume.

    The grand prize winner will also get an additional reward from partner institutions: either P3 million, P6 million, or one of two Toyota Innovas.

    De Leon also said there is now improved chances of winning, especially for those who can afford to invest in small amounts.

    “We will now have more winners in each of the quarterly rewards draw. Those who invest in smaller amounts don’t need to worry about having less chances of winning compared to those with bigger investments,” she said.

    Under the second premyo bonds, those who invested P20,000 or less are qualified for a special raffle which will have 20 winners of P50,000 each quarter.

    Meanwhile, de Leon said the 1.25 percent annual rate is higher than that of time deposit.

    “There are bigger rewards and more chances of winning. We cannot give rates higher than market. Will be front running market,” de Leon told reporters via Viber when asked to comment on the rate.

    The first premyo bonds offering raised P4.96 billion from the initial size of P3 billion, making it 65 percent oversubscribed. It carries a coupon rate of 3 percent per annum paid out per quarter, also on top of having a chance to win cash and other rewards.