Digital platforms help boost RTB haul to ₧463B
THE Philippines was able to raise P463.3 billion from the issuance of the 25th tranche of threeyear Retail Treasury Bonds (RTBS), according to the Bureau of the Treasury (BTR).
In her message to reporters last Thursday, National Treasurer Rosalia V. De Leon said government was able to raise P411.8 billion in new money while P51.5 billion was raised through the switch tender offer.
De Leon noted that the RTBS attracted more buyers from online and other applications compared to previously-issued RTBS.
“RTB 25 demonstrates increasing awareness of retail investors on government securities not only as safe and convenient investment particularly with easy access with mobile applications; more so, way of contributing to a strong and inclusive economic rebound,” the National Treasurer said.
RTB 25 had a coupon rate of 2.375 percent per annum. For as low as P5,000, Filipinos were able to invest in these RTBS.
This is the third time an RTB offering was coupled with an exchange offer. The bond exchange was wellreceived, with 12.9 percent of the
outstanding amount of the eligible bonds swapped for RTB 25.
As with the Btr’s recent offerings, the bureau’s online ordering facility was made available, providing a convenient channel for investors and overseas Filipinos to invest in RTB 25. Investors were also able to invest through the Bonds.ph mobile application and the Overseas Filipino Bank (OF Bank) Mobile Banking Application. A total of P55.6 million was raised from the online and mobile channels.
The BTR awarded P221.2 billion during the auction held last 09 February 2021. An additional aggregate amount of P242.1 billion, sourced from new subscriptions and bond exchange, was raised during the public offer period that lasted until 04 March 2021.
“As we endeavor to win back our growth momentum from the clutches of the pandemic, we turn to retail treasury bonds as our curtain raiser in what is shaping to be another busy year for fundraising. We have introduced further refinements to our online selling channels, at the same time expanding our partnership to a greater number of banks, with the intention of extending further our reach, bearing in mind the large population of Filipinos working abroad,” De Leon said in a statement.
Proceeds from the issuance will partially fund the 2021 budget and support programs for economic recovery and strengthening of the country’s health-care system.
The national government has been issuing RTBS since 2001 as part of its efforts to support financial inclusion and literacy among Filipinos.
Generally considered low-risk investment instruments, RTBS allow investors to earn a fixed interest based on prevailing market rates that are paid quarterly during the term of the bond.
The joint lead issue managers for the 25th RTB offering were the Development Bank of the Philippines and Landbank of the Philippines. The joint issue managers are: BDO Capital & Investment Corp.; BPI Capital Corp.; China Bank Capital Corp.; First Metro Investment Corp.; PNB Capital and Investment Corp.; RCBC Capital Corp.; SB Capital Investment Corp.; and, Unionbank of the Philippines.