The government is set to raise at least P30 billion via the issue of five-year retail Treasury bonds (RTBs) beginning next week to boost its resources by tapping a broader segment of buyers.
In a notice of offering published Friday, the Bureau of the Treasury (BTr) said the five-year RTBs will be auctioned over three weeks starting July 16 until Aug. 7.
The upcoming offer will be the second of the year and 24th overall for the Treasury. In February, the government raised a record P310.8 billion from RTBs – including P250 billion in “new money” and P60.8 billion from the exchange offer program.
The BTr said it has the option to increase the volume awarded and may close the offer period earlier if necessary.
Aside from the usual selling agents such as banks, the BTr said small investors can access the bonds via the Online Ordering facility on its website and through the new BONDS.PH mobile application offered by the Union Bank of the Philippines.
It said the bonds can also be bought via the electronic payments (e-payments) facilities of China Banking Copr., Development Bank of the Philippines (DBP), First Metro Securities and Brokerage Corp. and Land Bank of the Philippines (LANDBANK).
Selling agents can place bids of at least P500 milion. The RTBs will be issued in scripless form and will be sold in minimum denominations of P5,000.
Bonds purchased online will require a minimum P5,000 investment, capped at P500,000 per transaction.
Interest rates will be based on curent market levels of comparable securities. Interest payments will be made quarterly in arrears.
The bonds will be issued on Aug. 12 and mature on Aug. 12, 2025.
The RTBs will be listen on the Philippine Dealing and Exchange Corp. (PDEx).
RTB target small investors and are positioned as low-risk instruments with relatively high yields.
The BTr said the 24th issue is eligible for exchange by holders of series RTB 10-01, FXTN 05-73, RTB 10-02 or FXTN 07-57, who can turn in these papers for the new RTB.
It also opened up the exchange offer program for the RTB issue in February to holders of RTB 3-08, issued in 2017. — Beatrice M. Laforga