The government raised P100 billion from the sale of retail treasury bonds, the first under the administration of President Rodrigo Duterte.
The Bureau of Treasury said in a statement the nine-day public offer for 3.5 percent 2026 bonds which closed on Sept. 16 drew “considerable demand.”
National Treasurer Roberto Tan said the government accepted P100 billion as a part of the government’s RTB program.
The sold RTBs were the 18th tranche of retail bonds issues by the Treasury and the first under the Duterte administration. The previous administration in 2013 sold about P150 billion worth of RTBs.
The Treasury originally sold P65 billion on the first day of auction on Sept. 6, but the size was expanded amid strong investors’ demand.
“The expanded issuance aims to ensure that the RTB attains its goals of reaching a wide investor base, promoting savings and interest consciousness among Filipinos and mobilizing domestic savings,” the Treasury said.
The Treasury said dealers who qualified as selling agents were given incentives to sell at least half of allocated volumes to retail investors.
It said the funding exercise was a part of the financing program to meet the government’s requirements as it aimed to increase infrastructure spending and improve social services.
“These are the key points in the administration’s socioeconomic agenda in which investors have shown confidence, as evidenced by the high demand this issuance has garnered,” Tan said.
The Treasury accepted P65 billion for the 10-year RTBs at a coupon rate of 3.5 percent, 71.8 basis points below the previous average of 4.218 percent. It was higher than the secondary market rate of 3.4208 percent.
The issuance was increased after the nine-day public offer as subsequent road shows raised considerable demand for the securities.
The proceeds for the bond sale will be used to finance the expenditures program of the new government with focuses on infrastructure and social services.
The last time the government sold RTBs was three years ago, under the Aquino administration, with about P150 billion worth of RTBs sold.
The Treasury tapped Land Bank of the Philippines and First Metro Investment Corp. as the lead issue managers for the transaction while BDO Capital & Investment Corp., BPI Capital Corp., Development Bank of the Philippines and Chinabank Capital as the issue managers.
Selling agents included BDO Universal Bank, China Banking Corp., Citibank, DBP, East West Banking Corp., Land Bank, Metropolitan Bank & Trust Company, Philippine Bank of Communications, Rizal Commercial Banking Corp., Security Bank Corp., ING Bank, BPI Capital Corp., First Metro Investment Corp., Robinson Bank Corp. and BDO Capital & Investment Corp.