MANILA – Officials of the Bureau of the Treasury (BTr) have yet to firm up plans concerning the issuance of retail treasury bonds (RTBs) in the near-term as they continue to monitor the direction of interest rates, among other factors.
National Treasurer Rosalia De Leon told journalists Monday that market players are anticipating the RTB issuance since about PHP70 billion worth of debt papers will be maturing on February 19.
She, however, stressed that they continue to study the whole picture since “we still have a very strong cash position.”
“Of course, we have to consider the requirements now that we have a budget for 2019. And, at the same time, also look into what would be the rate environment around the next two to three weeks,” she said.
Additional factors are demand and tenor of the debt instrument, she said.
De Leon said they are considering tenors that are “at the belly of the curve.”
Banks that will be tapped to help in the debt sale have not been identified, she said, but pointed out these usually include the government-owned Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP).
“If we want to move ahead then it will be easier for us to work on a G-to-G (government-to-government) rather than go through the usual (path with the help of private banks),” she said.
RTBs are intended for small investors since minimum placements is PHP5,000.
The government last issued RTBs in June last year, when it managed to raise PHP121.765-billion worth of three-year papers. (PNA)
