Govt raises P65B from RTB auction

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The national government was able to raise P65 billion at its price setting auction for 10-year retail treasury bonds (RTBs) on Tuesday, the proceeds of which were meant to fund the Duterte administration’s infrastructure and social services projects.

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The amount sold in the first RTB issuance under the Duterte administration was more than double the P30 billion offer, the Bureau of the Treasury said.

“The proceeds are generally for the financing program for the year. As you know, we are ramping up our infrastructure expenditures as well as the provisions of the social services, for human capital development. This is part of the whole financing for the government,” National Treasurer Roberto Tan told reporters.

“We had a very good turnout in our auction to price the RTBs. So we’ll start our offer period (and it will run) until next week,” he added.

The RTB auction was oversubscribed with tenders for the 2026 bonds reaching P123.74 billion, more than four times the initial offer.

The coupon rate of the 10-year RTB stood at 3.5 percent, 71.8 basis points below the previous average of 4.218 percent and higher than the secondary market rate of 3.4208 percent.

The bonds will be offered to the general investing public in minimum denominations of P5,000 from September 6 until September 16, 2016.

The bureau said the RTB issuance is part of the initiative to make government securities available to retail investors and promote investment-consciousness among Filipinos.

In the 2013 RTB issue, the minimum offer of P30 billion was oversubscribed by 906 percent. Total proceeds reached P150 billion at a yield rate of 3.25 percent.

The designated selling agents are BDO Universal Bank, China Banking Corp., Citibank, Development Bank of the Philippines (DBP), East West Banking Corp., and Land Bank of the Philippines, Metropolitan Bank & Trust Company, Philippine Bank of Communications, Rizal Commercial Banking Corp., Security Bank Corp., ING Bank, BPI Capital Corp., First Metro Investment Corp., Robinson Bank Corp., and BDO Capital & Investment Corp.

The BTr has tapped BDO Capital & Investment Corp., BPI Capital Corp., DBP, and Chinabank Capital as issue managers for the RTB offering.

LandBank and First Metro Investment Corp. were designated as the lead issue managers for the transaction.

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