Metro Manila (CNN Philippines, January 24) — The Bureau of the Treasury said Friday it is Looking to raise at least ₱30 billion through retail bonds, just days after its successful foray into the European bond market.
In a notice of offering, the Treasury said it will issue three-year retail Treasury bonds or RTBs to the public next week.
RTBs are peso debt papers meant for individual investors. An investor needs a minimum placement of ₱5,000 to secure bonds, which will be repaid with interest. The annual yield would be determined in a pricing exercise on Tuesday, and will be paid quarterly.
RTBs are considered low-risk investments because these are issued by the national government.
The debt papers will be auctioned from January 28 until February 6. The offer period may be cut short should the government decide that it has received enough investments. The bonds must be settled by February 11.
The fresh offer also carries a special deal allowing holders of RTBs issued back in April 2017 to swap the papers for fresh RTBs. This would allow the state to lengthen the repayment period for old debts, as the older set of retail bonds must be settled by April 11.
Banks accredited as securities dealers may buy a maximum of ₱10 billion each, which they can sell to individual clients.
The bonds may also be bought online through Land Bank of the Philippines, the Development Bank of the Philippines, and the First Metro Securities and Brokerage Corporation.
The Treasury raised ₱236 billion when it last sold RTBs in March 2019, nearly eight times the original ₱30-billion offer. These are due in 2024.
On Tuesday, the government raised 1.2 billion euros (about ₱68 billion) through euro-denominated bonds offered to foreign investors, fetching record-low interest rates in its first foray to the global financial markets this year.
The fund raising forms part of the national government’s financing plans for 2020. This year, it plans to borrow ₱1.4 trillion, with 75 percent of the amount to be raised locally.
