The Bureau of the Treasury (BTr) yesterday issued the retail dollar bonds (RDBs) it recently offered which allowed the government to raise $1.26 billion from the said transaction.
In a statement, the BTr said the second onshore RDB was formally listed on the Philippine Dealing and Exchange Board.
It has a coupon of 5.75 percent per annum wherein final withholding tax on coupon payments will be assumed by the Republic of the Philippines.
Interest for the issuance poured throughout the auction and the public offer period, with the initial offering going six times oversubscribed from the minimum issue size of $200 million.
This prompted the auction committee to award $611.2 million during the rate setting auction held last September 27.
An additional aggregate amount of $650.66 million was raised throughout the 10-day offer period.
The BTr said it was able to reach out to overseas Filipino communities in 16 countries across Asia, North America, Europe and Australia.
For continued accessibility, investing in the RDB was made available via the BTr’s own online order-taking platform, the Bonds.PH Mobile Application, the LANDBANK Mobile Banking Application and the Overseas Filipino Bank Mobile Banking Application. These platforms generated a total volume of $2.56 million from 1,126 transactions.
“The BTr continues to prioritize digitalization as a means of promoting inclusive finance. Through our myriad of web- and app-based investment channels, we are able to further our thrust of enhancing retail access to government securities. In fact, total volume was more than triple of what was raised by our digital platforms during the maiden offering of the RDB in 2021” BTr office-in-charge Sharon Almanza said.
The proceeds of the RDB will go towards funding the national government’s key expenditures as approved by the 2023 National Budget.
