Government-owned Land Bank of the Philippines (Landbank) and Development Bank of the Philippines (DBP) have made it easier for small investors to purchase high-yield treasury bonds through e-wallets or mobile banking apps.
The Bureau of the Treasury (BTr) recently issued five-year Retail Treasury Bonds Tranche 31 (RTB 31) with an annual interest rate of six percent to be paid quarterly over five years.
Offered from August 5 to 15, and to be listed on August 20, RTB 31 is the first small-denominated government securities to become available on e-wallets.
Landbank President and CEO Lynette V. Ortiz said the bank’s digital platforms make it easier for Filipinos both here and abroad to invest, grow their savings and at the same time, fund the government’s critical programs.
“We are opening more doors for every Filipino to invest — not just in secure, high-yielding instruments like the RTB 31, but in the future of our country,” she said.
DBP President and CEO Michael O. de Jesus said RTBs are higher than typical deposits and other investment products in the market.
He said investing in the RTBs allows ordinary Filipinos to “grow their hard-earned savings as it is an accessible and low-risk instrument that offers steady returns.”
Landbank and DBP are joint lead issue managers for RTB 31. Investors can buy a minimum P5,000 RTBs and also subsequent multiples of P5,000.
Landbank offers RTBs through its mobile banking apps and via its digital bank unit, Overseas Filipino Bank.
Investors may also use the BTr Online Ordering Facility and settle the payments via Landbank’s Link.BizPortal, free of charge.
The BTr is offering the RTB 31 to help fund key national priorities, including agriculture, infrastructure, education, and healthcare.
During the rate-setting auction ahead of the RTB 31 launch, the BTr attracted P354.2 billion in total tenders which was 11.8 times the initial offer of P30 billion. Of this amount, P210 billion or 59 percent was awarded.
Landbank is the country’s second biggest universal and commercial bank while DBP is ninth largest of 44 big banks.
The RTBs form part of the government’s program to liberalize access to government securities, especially ordinary Filipinos.
RTBs are available over the counter, via online banking, and now on GBonds via Gcash.
The Philippine Digital Asset Exchange and Bonds.ph has partnered to allow fully verified users to invest in government bonds for as low as P500. There is no need for a bank account.
