Govt raises P255.4B from retail T-bond offer


Strong public demand allowed the government to raise P255.4 billion—more than eight times the amount initially considered—from its latest retail treasury bond (RTB) offering.

The Bureau of the Treasury (BTr), which last month initially announced an issue size of P30 billion, on Monday said it sold P125.4 billion worth of RTBs during the November 20-27 public offer period, adding to the P130 billion raised during a November 20 auction.

“We are delighted that the general investing public continued to show strong support for RTBs,” National Treasurer Rosalia de Leon said.

“The overwhelmingly positive response from the public shows that an increasing number of Filipinos are saving and investing, as well as considering the long-term benefits of investments for themselves and their loved ones,” she added.

Roadshows were held nationwide for five-year RTBs with a coupon of 4.625 percent, which could be purchased by small investors in minimum denominations of P5,000.

The Treasury bureau said it was successful in harnessing ample liquidity ahead of the Christmas season and the RTBs had been described as “the best gift that Filipinos could give to themselves or their loved ones”.

On Monday, de Leon said: “The benefits of RTBs are multifold. These instruments help achieve financial stability for individuals and families, and, at the same time, these allow ordinary Filipinos to profoundly contribute to nation-building.”

The Development Bank of the Philippines and Land Bank of the Philippines were joint lead issue managers for the 20th government RTB offering, which was the third for the Duterte administration.

Joining them as issue managers were BDO Capital & Investment Corp., BPI Capital Corp. China Bank Capital Corp. First Metro Investment Corp. and SB Capital Investment Corp.

The last RTB offering in April ended with the government raising P180 billion—six times more than the P30 billion initially announced—from the sale of three-year papers with a coupon of 4.25 percent. Around P100 billion was raised in a similar offering in September last year.

Officials have said that proceeds from the RTB sale would be used to augment funds for priority government programs including the ambitious “Build Build Build” infrastructure drive.


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