Philippines Launches 30th Retail Treasury Bond Offering, Aiming for PHP400 Billion
MANILA – The Bureau of the Treasury (BTr) announced the successful launch of the 30th tranche of Retail Treasury Bonds (RTB 30) on Tuesday, raising over PHP200 billion, signaling strong investor interest in government securities.
According to Philippines News Agency, the offering amassed PHP212.7 billion, surpassing the initial target of PHP30 billion. The overwhelming response from investors led to a total of PHP272.7 billion in tenders, prompting the BTr to increase the award size. The RTB 30, with a five-year term and a coupon rate of 6.25 percent, attracted significant attention due to its attractive interest rate and quarterly payout until maturity in 2029.
The issuance also includes an exchange program for holders of RTB 22 and 25, allowing them to reinvest their funds seamlessly and mitigate reinvestment risks. The public offering period is set from February 13 to 23, 2024, with settlement on February 28, 2024.
Almanza expressed optimism about reaching a PHP400 billion fundraising goal for the RTB 30, citing strong demand during the initial auction. The government aims to attract retail investors, potentially doubling the amount raised based on market appetite.
The Land Bank of the Philippines and the Development Bank of the Philippines served as joint lead issue managers, with support from 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 encouraged Filipinos to invest in RTB 30, highlighting its role in advancing the government’s socioeconomic agenda and offering a path to financial security. With a minimum investment of PHP5,000, RTBs present a low-risk investment option backed by the government.
Recto emphasized the ease of investing in RTBs, comparing it to ordering food delivery. Investments can be made over-the-counter or through the BTr’s Online Ordering Facility, accessible to clients of China Banking Corporation, DBP, LANDBANK, and First Metro Securities. Mobile banking options are also available through LANDBANK, OFBank, and Bonds.PH applications, enhancing accessibility for investors.