DOLLAR BOND SALE. Finance Secretary Benjamin Diokno said the government plans to offer retail dollar bond in December 2022. He expects large interest from overseas Filipino workers (OFWs) for the debt paper. (Photo courtesy of DOF)
MANILA – The Philippine government plans to offer another US dollar-denominated retail treasury bond (RTB) in December 2022.
“Kasi very attractive yan for the OFWs (overseas Filipino workers), especially kung may mga papa-aralin kang bata five years from now (This issuance is very attractive for OFWs, especially if they will send kids to school five years from now),” Finance Secretary Benjamin Diokno told journalists at the sidelines of a forum hosted by The Asset in Taguig City on Monday.
RTB is a debt instrument intended for small investors and is part of the government’s regular borrowing options.
Minimum investment for the peso-denominated RTB is PHP5,000.
The first time the government offered a US dollar-denominated RTB was in September 2021 as part of the diversification of its funding resources.
It raised a total of USD1.6 billion (PHP80.91 billion) from the sale of five- and 10-year paper, higher than the initial target of USD400 million.
Minimum placement for the retail dollar bond (RDB) is USD300, lower than the USD200,000 minimum investment for the government’s US dollar denominated bonds.
Diokno said they intend to hold a roadshow in Milan, Italy for the planned debt issuance.
The planned offering is part of the government’s move to raise funding for its various programs.
Diokno said they intend to have a 75-25 borrowing program in favor of domestic borrowings in most of the Marcos administration.
“That is to reduce the foreign exchange risk,” he added. (PNA)
