The national government successfully borrowed P457.8 billion from small Filipino savers.
The Bureau of the Treasury announced Tuesday, March 1, that the government raised P337 billion during the two-week offer period for the retail treasury bonds (RTBs), while the P120.8 billion were awarded during the rate-setting auction last Feb. 15.
Yield for the RTB was pegged at 4.875 percent for five-year debt papers.
Proceeds from the RTB issuance will help the country respond to the challenges posed by the pandemic and will support various programs for economic resiliency and recovery, the Treasury said.
“By our funding activities in the domestic space, we are shielding our debt portfolio from volatility in the global financial markets, all while taking advantage of the commitment of the Bangko Sentral ng Pilipinas for supporting the country’s economic recovery,” said National Treasurer Rosalia V. De Leon.
The last time the government sold debt to retail investors was in November 2021, during which it borrowed P360 billion of the 5.5-year papers.
The RTB is made available for as low as P5,000 through the traditional over- the-counter placement in bank branches.
The IOUs were also sold through digital channels such as the treasury’s RTB Online Ordering Facility, the Bonds.PH mobile app, the Overseas Filipino Bank Mobile Banking App, and the Land Bank Mobile Banking App.
This latest retail bond offering is the 10th of its kind made during the Duterte administration.
The issuance of retail bonds has been part of the government’s savings mobilization program designed to make government securities available to retail investors and at the same time create savings consciousness among Filipinos.
The government has been tapping funds from individuals since 2001 and had raised more than P1 trillion from the sale of the bonds with denominations as low as P5,000 in the past 21 years.