Metro Manila (CNN Philippines, November 26) — The Bureau of the Treasury has started offering “premyo bonds,” where investors who want to help the government raise funds can win cash prizes.
The Treasury announced that it plans to raise at least ₱3 billion from its latest bond offering, which would double as raffle coupons for investors.
The amount raised from premyo bonds will be used for “housing, education, healthcare, and social services,” with the principal amount to be returned to investors after one year.
The government regularly taps the bond market to secure short and long-term funding for public programs and projects, as it needs to spend more than what it can raise through taxes.
For a minimum investment of ₱500, one can join the offering which would earn 3 percent interest annually. The rate will be paid quarterly, on top of the chance to win cash prizes. Profits from the bonds are subject to a 20 percent final tax.
Each ₱500 investment is equivalent to one entry, with a limit of 20,000 coupons or ₱10 million per investor for the cash rewards.
The bonds double as raffle tickets, with the Treasury saying that there will be a quarterly draw where 50 people will win ₱20,000, 10 people will get ₱100,000, and one winner of ₱1 million cash. This may be adjusted depending on the demand for the bonds, the Treasury said.
Those who win the ₱1-million cash reward in the first three draws would receive non-cash rewards, such as a “condominium unit or a house and lot from Hotel 101, Lessandra by Vista Land, or Megaworld.” These would be net of all taxes and fees.
The public can avail of premyo bonds from November 25 to December 13, and must be settled by December 18, 2019. To avail, one must visit any of these selling agents: the Development Bank of the Philippines, Land Bank of the Philippines, BDO Capital & Investment Corporation, China Bank Capital Corporation, and First Metro Investment Corporation.
