Govt again offering retail treasury bonds

Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Thu, 21 Feb 2019 16:24:57 +0000

The government is looking to raise money from small investors anew via a retail treasury bond (RTB) offering starting next week

“Please be advised that the Republic of the Philippines through the Bureau of the Treasury will issue peso-denominated five-year fixed rate retail treasury bonds in a minimum aggregate nominal principal amount of P30,000,000,000.00,” the Treasury said in a notice on Thursday.

Bureau of the Treasury

It will be the fifth RTB offering for the Duterte administration following two in 2017 (April and November), one in September 2016 and one in May 2018.

At P30 billion, the size is similar to the last RTB sale, which ended up with the government selling four times that or P121 billion.

The five-year RTBs will will be offered to the general investing public in minimum denominations of P5,000 between February 26 and March 8, 2019.

The rate will be determined on February 26, the Treasury said, and the issue date will be on March 12

The May 2018 offering involved three-year RTBs with a 4.875 percent yield.

“[The] RTB sale is part of our funding program. This is also to enable small investors access to government securities,” National Treasurer
Rosalia de Leon said in a message to reporters.

The Treasury also announced that investors would be able purchase RTBs online.

“The RTB Online Facility’s primary objective is to encourage a wider participation among individual investors,” it said.

Eligible investors must have an existing and active peso deposit account with online access under state-owned Land Bank of the Philippines and Development Bank of the Philippines, the bureau continued.

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