RETAIL BONDS. Ma. Nanette Diaz, Bureau of the Treasury director for liability management services, discusses the campaign to make retail treasury bonds available to the public during the 23rd RTB Tranche Roadshow held in Bacolod City on Thursday afternoon (Jan. 30, 2020). Some 50 bank representatives from Manila and investors in Negros Occidental attended the roadshow aimed at reaching out to more retail investors. (Photo by Erwin P. Nicavera)
BACOLOD CITY -- Investing in retail treasury bonds (RTBs) is one way Negrenses could avail of government securities that are “more convenient and affordable”, the Bureau of the Treasury (BTr) has said.
As part of its campaign to make state bonds available to the public, the BTr conducted the 23rd RTB Tranche Roadshow at the Seda Capitol Central here on Thursday afternoon.
“By investing in RTBs, even ordinary people will now have access to government securities,” BTr director for liability management services, Ma. Nanette Diaz, said.
Some 50 bank representatives from Manila and investors in Negros Occidental attended the roadshow aimed at reaching out to more retail investors.
The target market is not just corporate investors, but also individuals who have yet to invest in government securities.
“Before, it has restrictions or limitations as banks required minimum investment amount ranging from PHP100,000 and above,” Diaz said.
However, right now, the RTBs are part of the government’s savings mobilization program designed to make government securities available, particularly to small investors.
The BTr started the eight-day public offer on January 28, while the issue date is slated on February 11. It has fully awarded its auction offer of PHP134 billion of the peso-denominated bonds at an average rate of 4.297 percent, against tenders totaling PHP149.83 billion.
The RTBs have a denomination of only PHP5,000 and in multiples of PHP5,000 thereafter, with a maturity of three years and an interest rate of 4.735 percent payable quarterly.
According to the BTr, RTBs are designed to be a low-risk, higher-yielding, and affordable savings instrument.
These are considered credit risk-free or default-free because they are direct, unconditional, and general obligations of the government. They are higher-yielding compared to savings accounts.
RTBs also earn a fixed interest rate, based on the prevailing market rate, and placement is targeted at retail and individual investors.
Based on RTB issuances, Western Visayas, which includes Bacolod City and Negros Occidental, has ranked sixth in the past five years.
Diaz said the issuance of government securities is a financing program of the government to raise funds.
The proceeds are being used to finance the deficit of the government, infrastructure projects, and socio-economic programs that would support its economic agenda, she added. (PNA)
