Treasury launches second ‘Premyo Bonds’

Published November 14, 2020, 6:30 AM

by Chino S. Leyco

The Bureau of the Treasury launched the second offering of the “Premyo Bonds” as part of its savings mobilization program designed to make government securities available to retail investors.

“Since Filipinos have long turned to the lotteries as means of gaining instant fortune, and as opposed to buying complicated and less understood fixed-income assets, we combined the best elements of the two into what is now the Premyo Bonds,” said National Treasurer Rosalia V. De Leon. 

“The hope is that as more Filipinos gain familiarity with treasury bonds, they will begin to realize higher returns on their savings while at the same time giving the government more financing sources to advance our economic agenda,” she added. 

Proceeds from the second Premyo Bonds will be used to fund the country’s response to COVID-19 as well as boost the Philippine economy.

In 2019, the Treasury, in partnership with the Financial Executives of the Philippines Academy, Inc., launched the first tranche of the Premyo Bonds to develop the capital markets and promote financial inclusion in the country.

The offer was met with strong market demand, generating nearly P5.0 billion in proceeds compared to the P3 billion offer.

With a tenor of one year and an interest rate of 1.25 percent per annum, the latest tranche of the Premyo Bonds offers bigger prizes and more chances of winning to the investing public.

An additional feature of the offering is the chance for small-denomination investors to win special cash rewards to be drawn every quarter. 

This scheme is on top of the main cash rewards draw where bondholders get a chance to win cash rewards of P1 million, P100,000, and P20,000 every quarter via raffle draw. Grand prize winners will also get an additional P3 million, P6.0 million or 2 brand-new Toyota Innovas.

Further, the second Premyo Bonds has been made more accessible to investors as they may now purchase through over-the-counter transactions with any of the selling agents and online through the Treasury’s online ordering facility and mobile applications via Bonds.PH.

For this offering, the Treasury has also included an exchange offer for eligible holders of the previous tranche of Premyo Bonds maturing on December 18 this year issued last December 18, 2019.