The Marcos administration is set to offer Filipinos the opportunity to grow their hard-earned savings by investing at least P5,000 in the government’s upcoming retail Treasury (RTB) bond sale.
The Bureau of the Treasury has announced that the government intends to raise more than P30 billion through borrowing from retail investors, promising a guaranteed interest rate for a five-year period.
Dubbed RTB, this investment instrument will be made available to the public from Feb. 13 to Feb. 23, and the issue and settlement date will be on Feb. 28.
Current RTB holders with bonds maturing this year can also swap them for the new bonds.
The Treasury bureau will conduct a rate-setting auction on Feb. 13 to establish the rate of return.
“The interest rate shall be based on current market levels of comparable securities rounded down to the nearest one-eighth (1/8) of one percent (1 percent),” the Treasury said.
This upcoming RTB offering is the government's first of the year and the 30th issuance overall.
Investors can purchase RTBs in increments of P5,000, with a maximum investment amount of P500,000.
Meanwhile, holders of RTB 03-11 maturing on March 9, 2024, and RTB 05-12 maturing on March 12, 2024, have the option to participate in the bond exchange during the period from Feb. 13 to 23.
“The exchange offer is likewise intended to manage refinancing risk in the debt portfolio of the Republic and is an integral part of its overall liability management program,” the bureau said.