President Marcos' chief economic manager urges Filipinos to invest in the retail dollar bond (RDB), highlighting its low-risk profile and convenient features.
Finance Secretary Benjamin Diokno emphasizes that RDBs offer low-risk, affordable, and convenient investment opportunities to diversify portfolios.
Diokno encourages citizens, especially Overseas Filipino Workers, to invest in RDB 2 for financial inclusion.
RDB 2 aims to attract more Filipino investors and promote financial inclusion.
RDB 2 features a minimum investment amount of $200, multiples of $100, a 5.5-year tenor, and a gross interest rate of 5.750% per annum.
Interest is paid quarterly until the bond matures in 2029.
The government guarantees the final withholding tax on interest for RDBs, and payment options are available through traditional and online platforms.
RDB 2 allows investors to contribute to nation-building by financing priority infrastructure projects and supporting the Philippine economy.
Diokno urges Filipinos to invest in retail dollar bonds
At a glance
President Marcos' chief economic manager is urging Filipinos to capitalize on the opportunity presented by the retail dollar bond (RDB), emphasizing its low-risk profile and convenient investment features.
In a statement, Finance Secretary Benjamin E. Diokno said that RDBs are fixed-income instruments that provide Filipinos with low-risk, affordable, and convenient investments to diversify their portfolios.
“I highly encourage all of you to invest in RDB 2. This investment product is a big leap towards achieving financial inclusion for our citizens, especially our foreign exchange-earning Overseas Filipino Workers,” Diokno said.
The RDB 2 is a potent tool for promoting financial inclusion and was designed to attract more Filipinos to invest in RDBs, according to the finance chief.
It offers several attractive features, including a reduced minimum investment amount of $200, with subsequent multiples of $100, a tenor of 5.5 years, and a gross interest rate of 5.750 percent per annum.
The interest is paid quarterly until the bond matures in 2029.
Additionally, the government guarantees the final withholding tax on interest for RDBs, and convenient payment options are available through traditional and online platforms, including over-the-counter subscriptions.
The RDB 2 allows investors to participate in the effort of nation-building through financing the government’s priority infrastructure projects and supporting the Philippine economy.
“With your investments, we manifest a better life for our families, communities, and the nation at large,” Diokno said.
The government has been conducting financial literacy sessions with over 700 Overseas Filipinos across Europe, Japan, America, Canada, and the Middle East.
“These sessions aim to strengthen our overseas retail investor base and build awareness for the Republic’s upcoming offering,” he said.
Before the RDB 2, the Philippines had launched the Retail Onshore Dollar Bond and raised a total of $ 1.6 billion, which was almost four times the initial target of $400 million, according to the finance chief.
The Bureau of the Treasury will offer the RDB 2 from Sept. 27 to Oct. 6, with the issue date scheduled on Oct. 11.