Marcos admin to borrow from small investors

Published August 19, 2022, 2:29 PM

by Chino S. Leyco

President Ferdinand Marcos Jr. will sell his first retail Treasury bond (RTB) to small Filipino savers, the Bureau of the Treasury announced on Friday, Aug. 19.

In a notice, the Treasury bureau said the national government will launch next week another RTB, offering a minimum principal amount of P30 billion.

According to the bureau, the 5.5-year RTB will be sold between Aug. 23 and Sept. 2 with a swap offer for bonds expiring on Sept. 13, Dec. 14, Dec. 6 and Feb. 11, 2023.

The government-owned and -controlled companies (GOCCs) and local government units (LGUs) are also encouraged by the Treasury to participant in this new fund raising program.

GOCCs and LGUs may place their orders for the RTR beginning Aug 23.

Proceeds from the retail bond sale will finance the projected higher budget deficit this year.

The last time the government sold debt to retail investors was last March, during which it borrowed P457.8 billion of the five-year papers.

The RTB is made available for as low as P5,000 through the traditional over- the-counter placement in bank branches.

This retail bond offer will be the first of its kind made during the Marcos 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.