The Bureau of the Treasury (BTr) said Tuesday it issued the 30th tranche of retail treasury bonds (RTBs) as part of the government’s efforts to raise P2.46 trillion in borrowings this year.
It said in a statement it raised P212.7 billion from the 30th RTB offering with a coupon rate of 6.250 percent for the five-year security.
The BTr said the auction received overwhelming support, with P272.7 million in total tenders, or nine times the P30-billion initial offer. The offer period will run from Feb. 13 to 23, 2024.
Finance Secretary Ralph Recto urged Filipinos to invest in RTB 30, which promotes cheap investment opportunities for small savers to secure their future.
“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,” Recto said in his keynote speech during the launching of the RTB 30 at the Ayuntamiento de Manila.
RTBs encourage ordinary Filipinos to start investing in safe and stable sources of passive income while helping the government raise funds to finance its priority projects nationwide.
RTBs, with a minimum investment of P5,000, are accessible and virtually risk-free investment instruments that are guaranteed by the entire financial capacity of the Philippine government.
“We should instill in our people a mindset that embraces and normalizes a culture of saving and investing, all while actively participating in the nation’s development,” Recto said.
RTB 30 is a 5-year tenor investment with gross interest rate of 6.250 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 begin on Feb. 13 until Feb. 23, 2024 and will be settled on Feb. 28, 2024.
All Filipinos, both here and abroad, can easily avail of RTBs to help improve their lives and the state of the country, Recto said.
“RTBs are just a few swipes away, making investing as easy as ordering our favorite food delivery,” he said.
LandBank of the Philippines and Development Bank of the Philippines are the joint lead issue managers for the RTB 30 offering, with BDO Capital and Investment Corp., BPI Capital Corp., Chinabank Capital Corp., First Metro Investment Corp., PNB Capital and Union Bank of the Philippines as joint issue managers.