New funds from ongoing RTB sale now exceed February level
THE Bureau of the Treasury said it has already raised more than P250 billion in “new money” from its ongoing sale of five-year Retail Treasury Bonds (RTB).
National Treasurer Rosalia V. De Leon shared this development with reporters on Tuesday, just a few days after kicking off the public
offer period for the 24th tranche of RTBS (RTB 24) dubbed as Progreso (progress) Bonds.
To recall, the Treasury raised a total of P310.8 billion from the 23rd tranche of RTB offered early this year. About P60.8 billion of this amount was raised through a switch tender offer or debt swap.
Last Thursday the Treasury raised P192.707 billion from its rate-setting auction of RTB 24, more than six times the initial P30-billion offer.
The Progreso Bonds was set with an annual fixed interest rate of 2.625 percent, payable every quarter, with a maturity date on August 12, 2025.
The three-week public offer period for Progreso Bonds is scheduled to last until August 7. However, the Treasury may opt to cut the public offer period earlier than scheduled.
The issuance of new RTBS due 2025 also comes with an exchange offer for RTB 10-01, RTB 10-02, FXTN 05-73 and/or FXTN 07-57. This scheme allows investors with these maturing specific bonds to shift to RTB 24 at no extra cost, the Treasury said.
The total outstanding amount of bonds eligible for the debt swap is about P321 billion.
RTBS are generally considered low risk for investors as these allow them to earn on a fixed interest based on prevailing market rates.
Investors can park their cash in RTBS for minimum denominations of P5,000.