Gov’t sells P13O-B retail Treasury bonds

THE GOVERNMENT has raised P130 billion via five-year retail Treasury bonds (RTB) — its second offer of the debt instruments for this year due to strong demand.

The Bureau of the Treasury’s rate-setting offer was met with bids totalling P191.8 billion, prompting the government to expand its award from the planned issuance of just P30 billion.

The five-year debt papers will have an indicative rate of 4.625%, and will be offered at a minimum investment of P5,000. The RTBs will be sold by 16 qualified selling agents from Nov. 20 to 29.

In a statement, Rosalia V. De Leon said the Treasury is maximizing the extra liquidity in time for the holidays.

“We also know that many Filipinos will have a ‘spend’ mindset during these times, so we want to present them with an investment option that will have multiple returns to them,” Ms. De Leon said.

“We have been encouraged by the response of the general investing public when we offered [RTBs] back in March to April,” she added.

At the first road show of the Treasury for the RTBs yesterday, Development Bank of the Philippines (DBP) President and Chief Executive Officer Cecilia C. Borromeo noted that the minimum investment of P5,000 is sized for regular Filipino families.

“This is consistent with the goal of promoting financial literacy and financial inclusion and to deepen the local capital markets,” Ms. Borromeo noted.

The Treasury’s statement also noted that investors will only need to have a peso-denominated account in the accredited banks for them to pay the principal payment, and receive interests which will be given in a quarterly basis.

The Treasury tapped DBP and Land Bank of the Philippines to be the joint lead issue managers for the RTBs, while BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., and SB Capital Investment Corp. serve as joint issue managers.

Traders noted that the P130-billion RTB award lessens the pressure for the next two regular auctions.

“They already reached their goal. With the next two auctions worth P40 billion, they can already reject bids which are too high for them,” a trader said. — Karl Angelo N. Vidal