The Bureau of the Treasury raised P113.8 billion on Tuesday from the sale of five-year retail treasury bonds.
Data showed the coupon rate settled at 6.25 percent amid the strong market demand for the initial offer of P30 billion. The auction was more than four-times oversubscribed as total bids hit P121.8 billion. The bureau rejected P8.035 billion.
“The offering was subsequently expanded from the initial P30 billion on offer to take advantage of the favorable rate and healthy market appetite,” the Treasury said.
“The 22nd tranche of RTBs have a five-year tenor and available to the investing public between Feb. 26 and March 8 at minimum denomination of P5,000,” it said.
The government has been issuing RTBs as a part of its efforts to promote financial literacy and wellness among Filipinos by making investments in government securities more accessible to the public.
RTBs are generally considered low-risk for investors, allowing them to earn a fixed interest based on prevailing market rates and are paid quarterly during the term of the bond. In 2018, the BTr offered RTBs in May.
“The resounding success of our RTB issuances highlights the increasing awareness of Filipinos on investment opportunities that do not only help them realize their personal goals but also allow them to directly partake in building our nation,” National Treasurer Rosalia De Leon said in a statement.
Proceeds from the issuance of RTBs will form part of the government’s fundraising efforts for its health services, educational programs and public infrastructure in line with the campaign “Bridging Dreams, Building the Nation.”
“Now that we are introducing the first-ever online RTB ordering platform, we are confident that we will further expand our reach to individual investors by making investment in RTBs easily accessible,” de Leon said.
“Through financial technology, we are also allowing OFWs to participate in our RTB offering even if they are miles away from home,” she said.
State-run Development Bank of the Philippines and Land Bank of the Philippines are the joint lead issue managers for the 22nd RTB offering.
They were joined by BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. as joint issue managers.