BSP lauds PH’s retail dollar bonds

Published September 27, 2021, 5:27 PM

by Lee C. Chipongian

BSP lauds PH’s retail dollar bonds

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno is hopeful the country’s first-ever retail dollar bond (RDB) issuance will encourage small investors such as overseas Filipinos to invest in securities.

Diokno said RDBs will not only promote financial inclusion but will also provide a “special opportunity for small and mid-sized investors to earn and, at the same time, help fund the government’s recovery and resiliency programs.” RDBs have a minimum $300 size as investment.

“These funds (from RDB issuance) will serve as additional source for stimulative fiscal policy which, together with the current accommodative monetary policy, will remain crucial in restoring confidence and reviving domestic demand,” he said. “Taken together, these initiatives will help the national government fight the adverse effects of the pandemic through targeted fiscal interventions, which are aimed at boosting market confidence and safely reopening more sectors of the economy,” he added.

The Bureau of the Treasury sold $866.2 million worth of onshore RDBs last September 15, more than the offer of $400 million amid high demand. The proceeds will be added to the government’s pandemic response.

Diokno said BSP initiatives helped make investing in securities like RDBs much easier such as: regulations that eased the process of opening bank accounts; the use of electronic Know-Your-Customer verification process; liberalization of foreign exchange rules that facilitate transactions of banks, overseas Filipinos, small- and medium-sized enterprises, and the general public; and promotion of financial digitalization.

Diokno said investors can purchase RDBs via e-banking apps and transfer funds to their bank accounts seamlessly through PESONet or InstaPay.