P30B retail T-bond auction set for March 28

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The government will issue next week P30 billion worth of retail treasury bonds (RTB) to promote financial literacy and inclusion in the country, the Bureau of the Treasury (BTr) said on Thursday.

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“The Bureau of the Treasury (BTr) will be putting on the auction block at least P30 billion worth of retail treasury bonds on Tuesday, 28 March 2017,” the BTr said.

The RTBs will have a three-year tenor and will be offered to the general investing public for minimum denominations of P5,000 between March 28 and April 6, 2017, it added.

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.

“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 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.

Financial literacy is key to attaining inclusive growth, as it is largely about equipping Filipinos with the awareness and knowledge of their financial options, allowing them to make the best decisions for their money. Financial literacy opens up more economic opportunities for Filipinos, beyond relying on a single source of income, it said.

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.

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