Government raises P6.56 billion from sale of Premyo bonds

MANILA, Philippines — The government was able to raise P6.56 billion from the issuance of Premyo bonds this year, the Bureau of the Treasury (BTr) reported yesterday.

National Treasurer Rosalia de Leon said sales from the three-week Premyo bond offering reached P6.56 billion, more than two times higher than the P3-billion target.

This is likewise 32.23 percent higher than the P4.961 billion sold during the government’s Premyo bond offering last year.

De Leon said the bonds, which were offered from Nov. 11 to Dec. 11, attracted many small investors locally and abroad with the help of digital platforms.

“Investments were generated from 70 countries and overseas Filipinos accounted for 15.7 percent of the total number of transactions. Also around 70.6 percent of individual accounts were made using our mobile apps, the Bonds.PH and the Overseas Filipino Bank mobile application,” De Leon said.

“Indeed, our foray into innovative technologies that enable convenient, safe and secure conduct of financing investments has allowed more Filipinos here and abroad to participate in Premyo bonds,” she said.

The BTr official also said there was an increasing number of Filipinos who prioritized investing for their future, despite the offer period coinciding with big event sales of major online shopping platforms.

She said companies are also taking advantage of the Premyo bonds to reward their employees during the Christmas season.

The Premyo bond sale forms part of the government’s borrowing program for 2020, which was raised to P3 trillion to generate funds for COVID-19 response programs.

The second tranche of the Premyo bond offering has a tenor of one-year, priced at an interest rate of 1.25 percent per annum.

Under the program, participants can place investments in minimum denominations of P500, with integral multiples of P500 thereafter.  It also has a switch tender component, which means holders of Premyo bonds due on Dec. 18, 2020 may opt to exchange their debt papers for the new securities.

On top of quarterly interest payments, investing in Premyo bonds would provide Filipinos a chance to win cash prizes of up to P1 million. Grand prize winners also have the chance to win additional cash and non-cash prizes.