Gov’t begins retail sale of RTBs

Published July 16, 2020, 10:00 PM

by Chino S. Leyco

Banks swarmed the national government’s latest retail bond offering targeted at local small investors, the Bureau of the Treasury said yesterday. 

During a price-setting auction, the Duterte administration raised an initial P192.71 billion from the sale of five-year retail treasury bonds (RTBs), which is more than six times higher than the original offer of P30 billion set by the government.

National Treasurer Rosalia de Leon said the government decided to upsize the awarded volume to take advantage of the strong market appetite and favorable coupon rate.

The RTBs—the government’s second issuance this year—fetched a coupon rate of 2.625 percent and total tenders of P278.57 billion.

“There is already good pick up with 2.625 coupon and results in real positive yield,” de Leon told reporters in a mobile phone message.

The RTBs maturing in 2025 are now being offered to the general investing public in minimum denominations of P5,000 until August 7 this year.

To ensure the greater participation of individual investors, de Leon said the bonds could be bought through online channels.

These include the RTB Online Ordering Facility through the Treasury website and settled through the electronic payment facilities of Development Bank of the Philippines, Land Bank of the Philippines and Overseas Filipino Bank.

The debt papers are also sold by First Metro Securities and Brokerage Corp. and China Banking Corp.

Investors can can likewise purchase through the BONDS.PH mobile application of the Union Bank of the Philippines by cashing in through the various payment options available in it, including InstaPay or PESONet, GCash or PayMaya.  “Online ordering platform and mobile app will allow us to reach far and wide small investors in this environment of safe distancing and quarantines,” de Leon said.

The bond offer will be the seventh of its kind made during the Duterte administration. The first was in September 2016; the second and third in April and November 2017, respectively; the fourth in May 2018; the fifth in February 2019; and the sixth in January 2020.