Gov't launches 30th tranche of Retail Treasury Bonds

By Anna Leah Gonzales

February 13, 2024, 9:58 pm

<p>Facade of the Bureau of Treasury <em>(PNA file photo) </em></p>

Facade of the Bureau of Treasury (PNA file photo) 

MANILA – The Bureau of the Treasury (BTr) on Tuesday launched the 30th tranche of its Retail Treasury Bond (RTB 30), successfully raising more than PHP200 billion.

The BTr successfully raised PHP212.7 billion from the offering.

The coupon rate was set at 6.25 percent for the five-year security.

The auction received overwhelming support, attracting PHP272.7 billion in total tenders—nine times the PHP30-billion initial offer.

This prompted the BTr to upsize the award in setting the coupon rate.

The RTB 30 is a five-year tenor investment with a gross interest rate of 6.25 percent per annum, payable every quarter until its maturity in 2029.

It also offers an exchange program, which provides a convenient way for investors to re-invest their funds and mitigate reinvestment risk upon maturity of the eligible bonds.

Eligible participants for the exchange are existing holders of RTB 22 and 25.

The public offering will run from Feb. 13 to 23, 2024, and will be settled on Feb. 28, 2024.

"We are very happy with the results of the auction," said BTr officer-in-charge Sharon Almanza in a briefing.

Almanza said the government is eyeing to raise as much as PHP400 billion from the RTB 30.

"Because of the very strong demand that we see during the initial auction, we think that during the offer period until Feb 23, depending on the appetite of the market... because we have switched as well so we want to encourage retail investors as well, so maybe we can double... increase [the amount] to 400 [billion]," she added.

The Land Bank of the Philippines and the Development Bank of the Philippines were the joint lead issue managers for the RTB 30 offering with the BDO Capital and Investment Corporation, BPI Capital Corporation, Chinabank Capital Corporation, First Metro Investment Corporation, PNB Capital, and Union Bank of the Philippines as joint issue managers.

Finance Secretary Ralph Recto, meanwhile, urged Filipinos to invest in the RTB 30.

“The RTB 30 is more than just a financial contract but a commitment to shared prosperity. It will help drive the government’s socioeconomic agenda forward and empower ordinary Filipinos to chart their path to financial freedom for a more secure future,” he said.

With a minimum investment of just PHP5,000, RTBs are accessible and virtually risk-free investment instruments that are guaranteed by the entire financial capacity of the Philippine government.

“RTBs are just a few swipes away, making investing as easy as ordering our favorite food delivery,” Recto said.

Aside from over-the-counter transactions, RTBs can be purchased via the BTr’s Online Ordering Facility for investors who are clients of the China Banking Corporation, the Development Bank of the Philippines (DBP), the Land Bank of the Philippines (LANDBANK), and the First Metro Securities.

The RTBs are, likewise, accessible via mobile banking through the LANDBANK, OFBank, and Bonds.PH applications. (PNA)