P3B eyed from Premyo, full award made on tbills

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    The Bureau of the Treasury (BTr) is hoping to raise P3 billion from its upcoming premyo bonds issuance after the success of its initial offering late last year.

    “Will launch premyo bond 2 next month. P3 billion target,” Rosalia de Leon, national treasurer, told reporters in a Viber group yesterday.

    “(Rate) still to be set. But you will be after the prizes not coupon. Tenor is only one-year so rate better than time deposit,” she added.

    Premyo bonds are interest-bearing securities offered by the government that have corresponding raffle numbers for a chance to win prizes.

    Premyo bonds are offered for a minimum investment amount of P500 and can be bought in multiples.

    The first premyo bonds offering raised P5 billion from the initial size of P3 billion, making it 65 percent oversubscribed.

    With the overwhelming public response to the premyo bonds offering, Carlos Dominguez, Department of Finance secretary, earlier said its next issuance will be made more accessible to Filipinos here and overseas via their smartphones and other mobile devices through the Bonds.PH app.

    During the third premyo bonds draw last September, 100 winners received P20,000 each, while 15 got P100,000 each. The grand prize winner received P1 million and a condominium unit from Megaworld.

    For the next premyo bonds offering in November, the theme will be livelihood, as Dominguez said the theme underscores the government’s hope of making the bond prizes effective instruments in creating job opportunities and helping Filipinos bounce back from the coronavirus crisis.

    Meanwhile, the BTr has made a full award on the treasury bills auctioned yesterday.

    The auction was oversubscribed with total bids reaching P69 billion, more than thrice the P20 billion offering.

    The rates for the 91-day, 182-day and 364-day IOUs were all lower than previous auctions and secondary market benchmark rates.

    “Liquidity remains strong. Looking for redeployment outlets with interests on the front end of curve,” de Leon said.

    She added that the tap facility window for the one-year paper has been opened for another P5 billion.