Duterte admin’s 4th RTB issue on offer ‘til Friday

With a minimum amount of P5,000, Filipinos can now invest in retail treasury bonds (RTBs), from which the National Government expects to raise P66 billion. The three-year RTBs have a coupon rate of 4.875 percent.

Erwin Sta. Ana, Bureau of the Treasury deputy treasurer, said this is the 21st issuance of RTBs by the government and the first for 2018. It is also the fourth issuance under the Duterte administration.

The RTB will be offered to the general investing public for minimum denominations of P5,000 between May 30, 2018 and June 8, 2018.

The bureau said the strong demand for RTBs has allowed the auction committee to increase the offering size to P66 billion from the initial announcement of P30 billion, with total tenders amounting to P92.8 billion.

RTBs are medium- to longterm investments issued by the government and form part of the government’s program to make securities available to small investors. 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.

Sta. Ana said that proceeds from this RTB offering will be used to finance the government’s infrastructure program and other priority projects.

Officials of the Treasury together with bank representatives were in Cebu last Friday to launch the three-year RTB in Marco Polo Plaza Cebu.

As of the first quarter of 2018, the required investment to imple- ment the Build, Build, Build program stood at P9 trillion, which will generate about one million jobs annually from 2018 to 2022.

Dennis Lawrence Lu, first vice-president of Metrobank, said RTBs are essentially riskfree investment options suitable and appealing to first-time investors because these are backed by the government.

A placement of P100,000 in a time deposit will earn an annual net return of P2,120 at 2.650 percent yield. But, if invested in RTBs, that P100,000 capital can generate a P3,900 annual net return.

Interest rising

Interested investors of the RTB only need to have a peso account with the banks identified as accredited selling agents of RTBs. It is through the peso account that the principal and interest payments will be made.

“The increasing interest of Filipinos in RTBs has been particularly encouraging. We are delighted that more and more Filipinos are getting into the habit of investing, as well as in taking part in the funding of the National Government. RTBs are a viable way for Filipinos to achieve their financial goals and prepare for the future, while helping the Philippine government in its financing needs,” said National Treasurer Rosalia de Leon in a statement.

Land Bank of the Philippines is the lead issue manager for the 21st RTB offering.

They are joined by BDO Capital and Investment Corp., BPI Capital Corp., Development Bank of the Philippines, Metropolitan Bank and Trust Company, and SB Capital Investment Corp. as joint issue managers.