MANILA – The government is eyeing the issuance of another retail treasury bond (RTB) as part of its efforts to raise the PHP2.46-trillion total financing requirement for this year.
In a statement on Friday, the Finance department said the Bureau of the Treasury (BTr) targets to issue the 30th tranche of its RTB within the first quarter of 2024.
"The RTBs encourage ordinary Filipinos to start investing in safe and stable sources of passive income, while promoting financial inclusion. To further this agenda, the BTr is looking to engage more digital finance platforms, allowing the BTr to reach a wider investor base," the DOF said.
The issuance of the RTB was one of the topics during a meeting held on Jan. 17 at the BTr office in Intramuros, Manila convened by Finance Secretary Ralph Recto to discuss the country's 2024 financing program.
To raise the country’s total financing requirement of PHP2.46 trillion for this year, the government will continue to adopt a 75:25 borrowing mix in favor of domestic sources.
"This prudent debt management strategy will allow the country to effectively mitigate foreign exchange risks, take advantage of the abundant liquidity in the country’s financial system, and support the development of the local debt and capital markets," the DOF added.
To further develop the country’s local debt and capital markets, the BTr will spearhead several capital market development initiatives such as improving the Government Securities Repurchase Agreement (Repo) Program and inclusion in an emerging market bond index.
To fulfill its 2024 external financing program, the BTr is looking at various global bond markets, consistent with its objective of diversifying funding sources.
The BTr is also exploring a potential curtain-raiser offering in the first semester of the year.
Last year, the BTr raised PHP1.87 trillion despite the challenging market environment.
Of the total, PHP1.65 trillion was sourced from the issuance of domestic treasury bills and government securities, while another PHP220 billion from external commercial sources. (PNA)
