BTr offers P30-billion retail treasury bonds

Published February 26, 2019, 12:00 AM

by manilabulletin_admin

By Emmie V. Abadilla

The Bureau of Treasury (BTr) yesterday put at least P30 billion worth of retail treasury bonds (RTBs) on the auction block.

National Treasurer Rosalia de Leon  (BLOOMBERG / MANILA BULLETIN)
National Treasurer Rosalia de Leon

This was the 22nd issuance of RTBs by the Philippine government and the first for 2019. The Development Bank of the Philippines and Land Bank of the Philippines are the Joint Lead Issue Managers.

BDO Capital & Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation, First Metro Investment Corporation, RCBC Capital Corporation, and SB Capital Investment Corporation were also Joint Issue Managers.

These RTBs will have a five-year tenor and will be offered to the general investing public for minimum denominations of P5,000 between February 26, 2019 and March 8, 2019.

The Philippine government has been issuing RTBs as part of its efforts to promote financial literacy and wellness among Filipinos by making investments in government securities more accessible to the public.

RTBs are generally considered low-risk for investors, allowing them to earn a fixed interest based on prevailing market rates and are paid quarterly during the term of the bond.

The BTr also offered RTBs last May.

“The success of our RTB issuances highlights the increasing awareness of Filipinos on investment opportunities that do not only help them realize their personal goals, but also allow them to directly partake in building our nation,” says National Treasurer Rosalia V. De Leon.

Proceeds from the issuance of RTBs will form part of the Philippine government’s fundraising efforts for its health services, educational programs, and public infrastructure, in line with the Republic’s campaign Bridging Dreams, Building the Nation.

“Now that we are introducing the first ever online RTB ordering platform, we are confident that we will further expand our reach to individual investors by making investment in RTBs easily accessible,” Treasurer De Leon added.

“Through financial technology, we are also allowing OFWs to participate in our RTB offering even if they are miles away from home”.

Those who want to avail of RTBs will find the process easy and convenient. Interested investors only need to have a peso account with the banks identified as accredited selling agents of RTBs.

It is through the peso account that the principal and interest payments will be made.

Furthermore, the Bureau of the Treasury is introducing an ordering facility to make RTBs available for online purchase.

The primary objective of this initiative is to encourage wider participation among individual investors and expand reach to overseas Filipinos.

Aside from the financial literacy sessions for OFs done in Singapore, Hong Kong, and Tokyo over the weekend, the BTr will be holding roadshows on the issuance of RTBs in key cities throughout the Philippines.