Cebuanos urged to invest in RTB29
The Bureau of the Treasury (BTr) invites Cebuanos to take advantage of the government’s retail T-bonds (RTB29), which allows small investors to invest at least P5,000.
Offered since February 7 and will run until the 17th of the month, the RTB is aimed at raising P162.18 billion funds.
In a roadshow held at the Radisson Blu Cebu, Joaquin Leandro C. Sanchez said the 29th RTB floated by the national government fetched an average yield of 6.002 percent. The investment will mature on March 2028.
According to Sanchez, investors particularly overseas Filipino workers can participate in the government’s fundraising and contribute to a P2.21 trillion borrowing program for 2023.
This latest offering is the 29th in a series of special issuances that began in 2001, which allow investors to access through several digital platforms including the bonds.ph mobile app, the Land Bank of the Philippines app, the Overseas Filipino Banks app, and the Treasury’s own online platform.
Moreover, the RTB 29, is also offered by BTr’s 21 participating banks, as selling agents, such as Bank of the Philippine Islands (BPI) Capital Corporation, Union Bank, Metrobank, Banco de Oro Unibank, Asia United Bank, BDO Capital & Investments Corporation, China Banking Corporation, Citibank N.A., Development Bank of the Philippines, East West Banking Corporation,
First Metro Investment Corporation, among others.
From the past 28 tranches, the government has raised a total of P4.8 trillion which helped the Philippine government to fund several infrastructure projects and other developmental projects for nation-building.
In this newest offer, the national government is expected to borrow P2.21 trillion, of which P1.65 trillion or 75 percent will be sourced domestically.
According to BTr the bias toward the domestic market base is part of its prudent steps to hedge positions from adverse effects or foreign exchange risk. It’s another part of its sustainable borrowing operations.
The RTB 29 would help efforts to offer a more inclusive means to invest with the use of distributed ledger technology, also known as the blockchain.
According to BTr, it is working to be able to issue the national government’s first-ever tokenized bond.
Investment instruments, such as government-issued bonds, will not only offer a more efficient way to invest in government securities but also provides an additional layer of protection against cybersecurity risks.
Treasury bonds are debt securities issued by the government. Essentially, loaning money to the government by purchasing a bond at a predetermined interest rate. In turn, the government will pay investors a fixed interest rate for a set duration of time.