MANILA -- The Bureau of the Treasury (BTr) has introduced an innovation in its Retail Treasury Bond (RTB) offering as investors can now order them through an online facility.
In a Notice of Offering posted on the BTr website Thursday, the Bureau said the rate setting auction for the five-year paper is set on February 26 while the end of offer period may be earlier than March 8 “as determined by the BTr.”
The issue date for the debt paper is on March 17, 2019, it said.
For the first time, BTr will be selling the debt instrument through the RTB Online Facility available through the websites of state-owned banks Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP). It mainly targets retail investors, with a minimum placement of only PHP5,000.
“The RTB Online Facility’s primary objective is to encourage a wider participation among individual investors,” the Notice of Offering said.
Maximum placements in the online facility is PHP500,000, with orders higher than the minimum placement to be in multiples of PHP5,000.
Eligible to tap the RTB Online Facility are active Landbank and DBP peso current and savings deposit account holders who are at least 18 years old.
BTr said “only individual peso deposit account can be used for purchase using the RTB Online Facility.” “Accounts with Joint, “In-Trust-For” or “By” accounts shall not be accommodated in the RTB Online Facility,” it said.
The RTB offering, which is Tranche 22 for the BTr, is the first for the government this year. The BTr last issued RTBs in June 2018, wherein it raised PHP121.765 billion of three-year paper.
National Treasurer Rosalia De Leon said the RTB offering "is part of our funding program." "This is also to enable small investors access to government securities," she added. (PNA)
