President Marcos' top economic manager stated that the ongoing sale of dollar-denominated retail Treasury bonds is a major step towards achieving financial inclusion for Filipinos.

Finance Secretary Benjamin E. Diokno said the second sale of retail dollar bonds (RDB) contributes to fostering financial literacy and inclusion among Filipinos by being easily accessible to the public through online channels.

In addition to the traditional method of subscribing through authorized selling agents, investors can also utilize the Bureau of the Treasury's Online Ordering Facility and mobile banking apps like Bonds.PH, Land Bank of the Philippines, and the Overseas Filipino Bank.

“The RDB2 is a big leap towards achieving financial inclusion for our citizens, especially our dollar-earning Overseas Filipino Workers,” Diokno said in a statement.

The finance chief also highlighted the Marcos administration's six-year agenda for economic and social transformation, aiming to bring about substantial and tangible improvements for the Filipino people.

“With your investments, we manifest a better life for our families, communities, and the nation at large,” the finance chief said.

The RDB offer is part of the government’s goal of financial inclusion for all Filipinos providing investors a tool to diversify their investment portfolio aside from the usual peso retail treasury bonds (RTBs).

RDBs, similar to RTBs, are low-risk, affordable, and convenient fixed-income instruments issued by the national government. With RDB 2, Filipinos can invest as little as $200, with subsequent investments in multiples of $100.00.

The offer period for RDBs take place from September 27 to October 6, 2023, and the issue date is scheduled for October 11, 2023, subject to the discretion of the Treasury.

Sharon P. Almanza, Officer-in-Charge Treasurer of the Philippines, said offering US dollar-denominated instruments provide retail investors, particularly overseas Filipinos, with protection against foreign exchange risks and the preservation of their US dollar savings' value.

Furthermore, Almanza said the government will also assume the final withholding tax on interest for RDBs, ensuring that investors can fully enjoy the returns on their investment.

“Given that the RDBs are available at a minimum of $200, this product serves as a more accessible financial instrument when compared to traditional ROPs, which are available for a minimum amount of $200,000,” the official said.

On Wednesday, the government has successfully raised $611.2 million through the sale of RDBs, marking President Marcos' first-ever issuance of such instruments to local investors, particularly OFWs.

The Treasury had initially planned to offer $200 million worth of RDBs. However, the response exceeded expectations, with investors oversubscribing the auction by more than three times.

Consequently, the government decided to increase the allocation for the 5.5-year RDBs.

The overwhelming demand from investors resulted in a total tender of $636.2 million, highlighting a strong interest in investing in dollar-denominated bonds.

The RDBs were issued with a coupon rate of 5.750 percent, surpassing the interpolated 5.5-year bond rate based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates.