Gov’t raises P113.8B at launch of new retail treasury bonds

MANILA, Philippines — The government raised P113.8 billion during the primary auction of new five-year retail treasury bonds (RTBs), the first for 2019, the Bureau of the Treasury said Tuesday.

In a statement, the BTr said retail investors swarmed the peso-denominated five-year fixed-rate debt papers. The treasury set the coupon rate at 6.25 percent “following strong market demand.”

The offering — which was four times oversubscribed as tenders totalled P121.8 billion — was subsequently expanded from the P30 billion that the government had initially planned to raise “to take advantage of the favourable rate and healthy market appetite.”

READ: Gov’t to sell P30-billion Retail Treasury bonds February 26 to March 8

RTBs target small investors as they are generally considered low-risk, thereby allowing investors to earn a fixed interest based on prevailing market rates and are paid quarterly during the term of the bond. Orders for this issue will be in increments of P5,000.

Public offer of retail T-bond runs from February 26 to March 8.

Proceeds from the issuance of RTBs will be used to provide budgetary support for the Philippine government, which has embarked on an ambitious infrastructure program.

“The resounding success of our RTB issuances highlights the increasing awareness of Filipinos on investment opportunities that do not only help them realize their personal goals, but also allow them to directly partake in building our nation,” National Treasurer Rosalia De Leon said. — Ian Nicolas Cigaral