Gov’t set to borrow P190B in April
SMPH P31.000 Value P665,785,685 P4.000 14.815%
SM P845.000 Value P636,822,200 P45.000 5.625%
THE government has set a P190-billion borrowing program for April focused on short-term tenors, even reintroducing a 35-day term, as investors shun securities with longer maturities amid ongoing uncertainties.
In a memorandum issued Thursday, the Bureau of the Treasury (BTr) said next month’s borrowing plan will consist of P130 billion in Treasury bills (T-bills)
ALI Value P1.600
P32.300 P553,662,170 5.212%
BDO Value P15.700
P115.700 P515,572,562 15.700% and P60 billion in Treasury bonds (Tbonds).
The April borrowing plan is a departure from the usual quarterly program released by the Treasury. The BTr said they want to assess developments as they go along as the market is filled with uncertainty due to the coronavirus disease 2019 (COVID-19) pandemic.
AC P482.000 Value P467,900,326 P22.000 4.783%
MBT P36.100 Value P462,969,130 P0.200 0.557%
“Situation is still fluid. We will monitor developments and assess [the] results of our auctions in April to determine if full issuance program for second quarter can be released,” National Treasurer Rosalia V. de Leon told reporters via Viber yesterday.
Ms. De Leon said the BTr has offered the 35-day papers in the past, adding that its plan to auction off this tenor
URC Value P0.600
P99.000 P450,739,210 0.610%
TEL Value P95.000
P1,066.000 P375,402,115 9.784% next month is meant to accommodate a shift in demand from the central bank’s term deposit facility (TDF), which was suspended last week.
“BSP suspended TDF. The 35-day bill provides outlet for investors while at the same time provides funds for our shortterm requirements,” she said.
Broken down, the government will offer T-bills every Monday, broken down
JFC Value P3.750
P102.200 P329,083,271 3.809%
GLO P1,930.000 Value P235,862,070 P90.000 4.891% into P10 billion for the 91-day tenor and P5 billion each for 182- and 364-day T-bills, while the 35-day tenor will be auctioned off fortnightly at P15 billion each.
For the T-bonds, the Treasury will auction off P30 billion in one-year securities on April 14, and another P30 billion in two-year bonds on April 28.