The government successfully raised P70 billion from the issuance of retail treasury bonds Tuesday.
National Treasurer Rosalia de Leon said the strong demand for the three-year securities set the coupon rate at 4.25 percent, with total tenders reaching P86.2 billion for a bid-to-cover ratio of 2.87 percent.
This encouraged the auction committee of the Bureau of Treasury to expand the offering from the initial announcement of P30 billion to P70 billion to accommodate the strong market appetite.
“Now on its 19th issuance, the RTB has provided invaluable contributions and made a difference,” De Leon said.
“For the government, it has evolved as a staple platform in the government’s financing program, allowing us to achieve twin objectives of inward bias to take advantage of ample domestic liquidity and reduce foreign exchange exposure,” she said.
De Leon said it also helped inculcate good money habits among retail investors by providing them access to an affordable and secure instrument that yielded favorable returns.
The 19th tranche of RTBs have a three-year tenor and is available to the general investing public between March 28 and April 6, 2017 at minimum denominations of P5,000.
The Treasury tapped First Metro Investment Corp. and Land Bank of the Philippines as joint lead issue managers and BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., Development Bank of the Philippines and SB Capital Corp. as joint issue managers for the RTB offering.
The Treasury will hold a series of roadshows in key cities to promote the RTB offering. A roadshow was conducted in the Development Bank of the Philippines headquarters in Makati City on Tuesday.
Other roadshows will also be held on March 29 at Mount Malarayat Golf and Country Club, Lipa City; March 29, Marco Polo Hotel, Davao City; March 30, Baguio Country Club, Baguio City; March 30, Radisson Blu Hotel, Cebu City; March 31, Quest Hotel, Clark Freeport Zone, Pampanga; March 31, Seda Atria Hotel, Iloilo City; April 3, Mallberry Suites Business Hotel, Cagayan de Oro City; and April 3, The Oriental Legazpi, Legazpi City.