Retail T-bond sales reach all-time high

MANILA, Philippines — Funds raised under the government’s ongoing retail Treasury bond (RTB) sale have already reached a new record high as investors swarmed the fundraising activity,  according to the Bureau of the Treasury (BTr).

In a text message to reporters, National Treasurer Rosalia de Leon said new money raised from the sale of five-year RTBs has already exceeded the record high P310.8 billion raised early this year.

De Leon, however, declined to specify how much exactly has been raised, and said “let it grow first.”

This feat was achieved in less than one week from the launch of the RTB offering on July 16, with the help of the Treasury’s online selling platforms, including the newly launched Bonds PH mobile application.

Asked if the Treasury has plans to cut short the offer period given its record sales, De Leon said, “we need time for  overseas Filipinos and also to get people on board Bonds PH.”

The public offering for the five-year retail bonds is scheduled to end on Aug. 7.

De Leon said the Treasury is conducting investor briefings both here and abroad to encourage more small investors to participate in the RTB offering.

In its previous retail bond issuance in February, the government was able to sell P310.8 billion worth of three-year securities, P250 billion of which came in the form of new investments, and P60.8 billion from switch tender offers.

The debt papers, which will mature in 2023, carry a coupon rate of 4.375 percent.

On the other hand, the five-year bonds under the government’s current RTB sale are priced at a coupon rate of 2.625 percent.

Small investors may still buy the debt papers in minimum denominations of P5,000.

According to the BTr, proceeds of the RTB issuance will be used to aid the country’s efforts to mitigate the impact of coronavirus disease 2019 (COVID-19) and to support sectors most affected by the pandemic.

The Treasury said this would also be used to fund infrastructure projects and other national government expenditures.

Aside from raising new money, RTB-24 also has a debt swap component, where holders of maturing bonds may exchange their old debt notes for the new RTBs.

To ensure the wider participation of individual investors in the RTBs, the BTr said investors may use the RTB Online Ordering Facility through its website. Investors may also use the Bonds PH mobile application of the Union Bank of the Philippines.