• BTr sells P175 B RTBs

The Bureau of the Treasury (BTr) sold P175 billion in retail treasury bonds (RTB) until the last day of the offering last April 6 in a bid to raise more funds for the government's infrastructure program.

The three-year fixed rate issuance was almost six times oversubscribed as compared to the P30 billion original offering after small investors swarmed the offering.

The bonds were sold at a coupon rate of 4.25 percent which will be paid every quarter by the government.

“We are very pleased with the overwhelming response, particularly for the retail investors to the issue. This only confirms the strong interest of investors to support the government's priority programs,” National Treasurer Rosalia de Leon said.

According to a local bond trader, results of the RTB offering reflects strong demand for shorter dated securities as a result of uncertainties posed by risks, such as potential higher inflation rate and monetary policy tightening from the US Federal Reserve and the Bangko Sentral ng Pilipinas.

The trader said the offering is considered “very successful,” benefitting both the investors and the government.

“I think the clients or investors have benefitted from this issuance since it's short and it was priced at a good level,” the trader said.

On the part of the issuer, the trader said this would give the BTr more leverage and flexibility in accepting rates for future issuances in the second quarter.

“With P175 billion of new money...they will have the flexibility in assessing which particular rates will be appropriate to award in their auctions,” the trader said.

The Treasury is set to borrow P180 billion domestically through T-bonds and T-bills from April to June.