Govt sets retail T-bond offering

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The Duterte government is again looking to tap small investors via a third retail treasury bond (RTB) offering next week.

At P30 billion, the size is similar to the last RTB sale in April, which ended up with the government selling six times that at P180 billion. Around P100 billion was raised in a similar offering in September last year.

“We have to align with the market but at the same time also we see there is a lot of liquidity, and this is why we are offering the comeback of the RTB,” National Treasurer Rosalia de Leon told reporters.

The RTBs will have a five-year tenor and will be offered to the general investing public for minimum denominations of P5,000 between November 20 and 29, 2017. The issue date will be on December 4, the
Treasury bureau said.


The rate for next week’s offering is still being determined.

“We still see that there is still a lot of appetite among the retail sector and that is … a very strong, very huge source of funding for the government,” de Leon said.

The April offering involved three-year RTBs with a 4.25 percent yield.

“During the April issuance we’d seen … very strong demand,” de Leon said.

The bureau has said that RTBs are an opportunity for the investing public to access affordable and higher-yielding instruments.

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

 

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