The Bureau of the Treasury has raised a record P516.3 billion from the issuance of five-year retail treasury bonds, or Progreso Bonds, at the rate of 2.625 percent a year.
The Treasury said in a statement Friday the total issue size of the bonds consisted of P488.5 billion in new subscriptions and P27.8 billion more from the bond exchange program.
Following the strong reception of the BTr’s offering of the RTB 23 in February, the second RTB offering for 2020 was met with overwhelming demand from the investing public, with the issuance being oversubscribed by more than 10 times the planned minimum issue size of P30 billion.
The public offering period began on July 16 and closed on August 7 as scheduled.
The BTr awarded P192.7 billion during the initial auction held on July 16. An additional P323.6 billion, sourced from new subscriptions and via the bond exchange, was raised during the three-week public offer period.
The BTr conducted targeted online roadshows for audiences nationwide, including cooperatives and employees’ associations.
"The overwhelming market response to our offer of PROGRESO bonds underlines the strong investor appreciation of the country's exceptional credit profile under the Duterte presidency along with broad support for government efforts to save lives and steer the economy to recovery in the face of the global health emergency," Finance Secretary Carlos Dominguez III said.
He said "the more small investors save their money by putting them in relatively higher-yielding RTBs, the more the country moves closer to President Duterte's paramount goal of financial inclusion for all Filipinos."
“Market liquidity, great timing and our attractive interest rate were the drivers of success for this year’s offering of RTBs. As our economy expands and more people become financially capable to save, it is rewarding for the BTr to see a wider set of the public put their trust in our almost annual fund-raising exercise,” said National Treasurer Rosalia De Leon.
The RTB issuance forms part of the government’s proactive financing strategy. Proceeds will go to the government’s general fund, and various projects including the country’s emergency, recovery and resiliency programs.