Government eyes $200 million from retail dollar bond sale

MANILA, Philippines — The Philippines will start offering dollar-denominated retail bonds next week to raise at least $200 million (around P12.75 billion), according to the Bureau of the Treasury (BTr).

In a notice of offering, the Treasury said three-year retail onshore dollar bonds due 2029 would be offered from Nov. 19 to 24. The issue date is set on Nov. 27.

“The final interest rate will be determined through a Dutch auction to be participated in by GSEDs (Government Securities Eligible Dealers) on auction date,” the BTr said.

This was the third offering after the government raised $1.26 billion in 5.5-year for retail dollar bonds in Oct. 2023 and $1.6 billion from its maiden RDB sale in 2021.

The retail dollar bonds serve as an alternative investment product and the proceeds of the fund-raising activity will help boost government budgetary support.

To ensure wider participation, investors may order and purchase this through e-wallet giant GCash’s GBonds or Philippine Digital Asset Exchange (PDAX) Inc. Bonds.

The dollar bonds will also be available on the BTr online ordering facility through the BTr website and settled via electronic payment facilities of China Banking Corp., Metrobank via First Metro Securities Brokerage Corp. and Land Bank of the Philippines.

This can also be accessed through Overseas Filipino Bank and Landbank mobile banking applications.

BTr said investors can make as many transactions as they may desire, provided that a minimum amount of $200 and a maximum amount of the dollar equivalent of P500,000 shall be accepted per transaction.

In a separate release, PDAX said the launched Retail Dollar Bonds Tranche 3 allows Filipinos direct and easier access to government-backed, dollar-yielding products starting at just $200 with zero primary offering fees.

“Filipinos should not need substantial wealth or a private banker to access dollar investments. With as little as $200, they can now invest in Philippine government dollar bonds directly through the PDAX App, diversify their savings and earn regular dollar income,” PDAX founder and CEO Nichel Gaba said.

The government plans to raise P892 billion from the local debt market in the fourth quarter. It also wants to borrow P2.73 trillion this year.