Govt raises P70B from 3-yr retail bonds

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The national government was able to raise P70 billion at its price setting auction for three-year retail treasury bonds (RTBs) on Tuesday, in line with the government’s aim to promote financial literacy and inclusion in the country.

The amount sold in the second RTB issuance under the Duterte administration was more than double the P30 billion initially offered, the Bureau of the Treasury (BTr) said.

The RTB auction was oversubscribed with tenders for the 2020 bonds reaching P86.2 billion, more than two times the initial offer.

The coupon rate of the three-year RTB stood at 4.25 percent, 32 basis points higher than the secondary market rate of 3.93 percent for the same tenor.


The bonds will be offered to the general investing public in minimum denominations of P5,000 from March 28 until April 6, 2017.

“We want more Filipinos to get into the habit of investing, and become more financially aware of how their money could work harder for them,” National Treasurer Rosalia de Leon had said.

Retail treasury bonds offer an opportunity for the investing public to access affordable and higher-yielding instruments compared to regular time deposits, the bureau said in a statement.

It said the low-risk nature and three-year tenor of the latest bonds makes the investment product more attractive to any Filipino who would want to get into the habit of investing.

The BTr pointed out that RTBs form part of the Philippine government’s funding program, which aims to promote financial literacy and inclusion among individual investors.

RTBs earn a fixed interest rate based on prevailing market rates with interest coupons paid quarterly.
The BTr will be holding roadshows in key in Metro Manila, Baguio, Batangas, Cagayan de Oro, Cebu, Davao, Iloilo, Pampanga and Legazpi.

The BTr has tapped First Metro Investment Corp. and Land Bank of the Philippines as joint lead issue managers and BDO Capital & Investment Corp., BPI Capital Corp., Development Bank of the Philippines, China Bank Capital Corporation and SB Capital Corporation as joint issue managers.

In September last year, the government issued 10-year RTBs. The minimum offer of P30 billion was oversubscribed by 233 percent. Total proceeds reached P100 billion, with a yield rate of 3.5 percent.

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