Government readies issuance of P30 billion retail T-bonds

MANILA, Philippines — The government will offer at least P30 billion worth of three-year retail Treasury bonds (RTBs) starting this week to boost the state coffers and manage its liabilities, the Bureau of the Treasury (BTr) said.

In a notice posted on its website, the BTr said the government would be issuing three-year fixed rate RTBs due 2024 in a minimum principal amount of P30 billion.

The debt papers will have their price-setting auction on Feb. 9, with the public offer period starting on the same date. Offering will end on March 4, while the target settlement date is on March 9.

Aside from fresh investments, participants of this RTB tranche will also get the opportunity to swap their old bonds maturing this year for the new debt papers.

“The purpose of the invitation is to present a reinvestment opportunity for holders of eligible bonds given its forthcoming maturity dates. The exchange offer is likewise intended to manage refinancing risk in the debt portfolio of the Republic and is an integral part of its overall liability management program,” the BTr said.

Eligible bonds for the debt swap offer include fixed rate treasury note (FXTN) 07-57 maturing on March 20, FXTN 10-53 maturing on April 28, RTB 03-09 maturing on June 13, RTB 10-03 maturing on Oct. 20, and FXTN 10-55 maturing on Nov. 24.

Through the RTB offering, small investors may be able to invest in government securities in minimum denominations of P5,000.

Meanwhile, government securities eligible dealers (GSEDs) will be allowed to place a maximum of 10 bids at different rates for a maximum of P10 billion per bid.

Dealers who have successfully placed bids for a minimum principal amount of P500 million may qualify as selling agents.

This marks the 25th tranche of RTBs to be issued by the Philippine government.

In August last year, the national government successfully raised P516.3 billion from the issuance of five-year RTBs, the highest volume ever recorded for any of its retail offerings.

The debt papers were priced at coupon rate of 2.625 percent.

Of the total amount, P488.5 billion came from “new money” while P27.8 billion came from switch tender offers.

In previous RTB auctions, the Treasury had also made use of digital platforms, including the RTB Online Ordering Facility and Bonds.PH mobile application to make the offering more accessible to individual investors.