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By Chino S. Leyco, Reporter
THE government has set the
minimum volume for its planned borrowing through the retail sale of
Treasury bonds or IOUs.
National Treasurer Roberto Tan
said the size of the retail T-bond (RTB) offer is likely to be more
than the P33 billion to replace the amount that matured on July 1.
“We can go higher. There is
really [a] huge demand. We have to satisfy the market,” Tan told
reporters.
Unlike regular T-bonds, RTBs
cater to small investors because they can buy the investment
instrument for as little as P5,000.
In line with the new RTB
offering, Tan said the government decided to scrap two remaining
T-bond auctions this month, with a combined issue size of P14
billion.
“To provide a clear market for
the forthcoming issuance of [RTBs] Tranche 10 by the end of July, we
are canceling the remaining [T-bond] auctions scheduled this
month,” he said.
Tan earlier said the government
will sell RTBs, with tenors of three- and five-years. The yields on
these investment instruments would be based on market rates, he
said.
“This is an instrument to
provide investment options to small savers specially those who would
like to invest their funds which matured from [earlier] RTBs,” he
said.
The government appointed BPI
Capital Corp., Development Bank of the Philippines and First Metro
Investments Corp. as joint issue managers for the RTB sale.
The government last sold RTBs
last year, raising P77.65 billion in three- and five-year debt
papers.
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