The Bureau of the Treasury (BTr) has concluded the issuance of P150-billion worth of 10-year retail treasury bonds (RTB).
The RTB is a special offering program of the government intended for retail investors, especially individual savers. It has a quarterly coupon and may be subscribed to by the public in minimum denominations of P5,000.
Issued on August 15, 2013, the RTBs are set to mature on August 2023 and carry a coupon rate of 3.25 percent per annum.
In a statement, the bureau said that the RTBs were simultaneously listed on the same date at the Philippine Dealing Exchange Corp. (PDEx), marking the commencement of secondary trading for the bonds across all segments of the market, including retail and individual investors.
The RTBs were auctioned on July 30, and the Treasury bureau accepted an aggregate amount of P100 billion from submitted total tenders amounting to P271.59 billion, fetching a hefty nine times bid-cover ratio based on the original offer amount of P30 billion.
The BTr subsequently allocated an additional P50 billion during the eight-day public offer period, which ended on August 12.
“Preliminary results of the primary offer period indicate an aggregate sale to retail investors of around 65 percent and to individual investors of around 49 percent,” it stated.
Treasurer of the Philippines Rosalia de Leon reiterated the government’s staunch commitment to develop the local capital markets, and create investors out of the ordinary retail investors through the RTB issuance program.
“This RTB offering gives ordinary Filipinos the investment opportunity to participate in the debt market and raise their savings and investment consciousness,” de Leon added.
On the other hand, the bureau reported that selling agents were required and directed by the BTr to sell down to retail investors at least 50 percent of their holdings, and further sell down to individual investors at least 20 percent of their allocation.
“These new features of the offering are geared toward achieving the BTr’s objective to make the RTB more accessible to truly retail/individual savers,” it said.
The Land Bank of the Philippines was designated as the Lead Issue Manager for the transaction. Joining Land Bank as Issue Managers were BDO Capital and Investment Corp., BPI Capital Corp., the Development Bank of the Philippines, First Metro Investment Corp. and SB Capital Investment Corp.