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

MANILA, Philippines — The government is scheduled to float at least P30 billion worth of five-year Retail Treasury bonds (RTBs) starting next week, the Bureau of the Treasury (BTr) announced yesterday.

In a notice posted in its website yesterday, the Treasury said the government would be offering to the investing public peso-denominated five-year RTBs worth P30 billion from Feb. 26 to March 8.

Government securities eligible dealers (GSEDs) were also invited to participate in the price-setting auction, which will be conducted on Feb. 26.

According to the BTr, dealers would be allowed to place a maximum of 10 bids at different rates for a maximum of P10 billion per bid.

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

Meanwhile, retail investors may also buy RTBs during the offering period in minimum denominations of P5,000 and integral multiples thereof.

The securities will be issued on March 12.

RTBs form part of the government’s funding program. This will be the 22nd RTB offering of the government and the first within the year.

According to National Treasurer Rosalia De Leon, proceeds of the RTB sale would be used to bridge the government’s budget requirements for this year.

Meanwhile, the BTr will also be launching its RTB Online Facility for the issuance to allow individual investors to buy RTBs directly from the agency.

“The BTr introduces a new online ordering facility where investors can order and purchase the RTBs through an online facility. The RTB Online Facility’s primary objective is to encourage a wider participation among individual investors,” the agency said.

The facility will be available at the Land Bank of the Philippines and Development Bank of the Philippines’ webpages.

To give way to the RTB issuance, the government will not be conducting its usual Treasury bills and Treasury bonds auction scheduled for Feb. 26 and 27.

The last time the government issued retail securities was in June last year. Back then, the Treasury was able to raise a total of P121.77 billion from the sale of three-year RTBs at a coupon rate of 4.875 percent. This was four times higher than the P30 billion initial volume for the offering.