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Newbie gov't securities investors take bulk of ‘premyo’ bonds

By Joann Villanueva

November 11, 2020, 8:22 pm

<p><strong>BONDS</strong>. (From left to right) OFBank president and chief executive officer (CEO) Leila Martin, Landbank president and CEO Cecilia Borromeo, Finance Secretary Carlos Dominguez III, and National Treasurer Rosalia de Leon, show the screen of their mobile phones after placing their investments for premyo bonds 2. The launch of the second installation of the one-year debt paper Wednesday (Nov. 11, 2020) was aired over the Bureau of the Treasury (BTr) Facebook page. <em>(Photo from BTr Facebook page)</em></p>

BONDS. (From left to right) OFBank president and chief executive officer (CEO) Leila Martin, Landbank president and CEO Cecilia Borromeo, Finance Secretary Carlos Dominguez III, and National Treasurer Rosalia de Leon, show the screen of their mobile phones after placing their investments for premyo bonds 2. The launch of the second installation of the one-year debt paper Wednesday (Nov. 11, 2020) was aired over the Bureau of the Treasury (BTr) Facebook page. (Photo from BTr Facebook page)

MANILA – Bulk of the holders of the initial premyo bonds are first-time government securities (GS) investors, making authorities optimistic for the success of the second issuance.
 
“We plan to sustain the interest of our investors by making this premyo bond bigger and better and with a purpose,” National Treasurer Rosalia de Leon said in her speech during the launch of premyo bonds 2 aired over the Bureau of the Treasury’s (BTr) Facebook page Wednesday. 
 
De Leon said about 77.6 percent of the PHP4.96-billion subscription of the premyo bonds offered in November 2019 was accounted for by newly-created accounts in the National Registry of Scripless Securities (NRoSS).
 
The one-year paper will be offered from Nov. 11 until Dec. 11, 2020 for minimum placement of PHP500 and maximum of PHP10 million.
 
It has an interest rate of 1.25 percent and interest payment will be done quarterly. 
 
A 20-percent final withholding tax will be applied for the investment.
 
Interested individuals, cooperatives, retirement funds, provident funds, and mutual benefit associations may place their investment through the Land Bank of the Philippines (Landbank), Development Bank of the Philippines (DBP), China Bank Capital, BDO, PNB Capital, First Metro Investment Corporation (FMIC), and Union Bank of the Philippines (Unionbank).
 
For online options, investors may tap the BTr website, the digital-only Overseas Filipino (OFBank), which can be accessed through its mobile app; and the Bonds.PH mobile app.
 
Holders of the debt securities will have a chance to win cash prices of over PHP1 million, as well as two Toyota Innova vehicles during the quarterly draw.
 
Initial offering has been set at PHP3 billion, same as last year, but de Leon earlier indicated optimism of hitting at least the level of issuance last year.
 
Asked regarding the interest rate of the second issuance, which is lower than last year’s 3 percent, de Leon told journalists in a Viber message this remains higher than the yield of the one-year time deposit.
 
She said premyo bonds holders will have more chances of winning and stand to win bigger rewards for this issuance.
 
“We cannot give rates (that are) higher than (the) market. Will be frontrunning the market,” she added. (PNA)
 
 

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