Treasury offers 24th tranche of retail treasury bonds

July 17, 2020

The Bureau of the Treasury (BTr) awarded P 192.707 billion worth of Retail Treasury Bonds (RTBs) in Thursday’s auction.

This is the 24 th issuance of RTBs by the Philippine government and the second for 2020.

These RTBs will have a five-year tenor and will be offered to the general investing public in minimum denominations of P5,000 from July 16, to August 7, 2020 (or any earlier date as may be determined by the BTr) at an interest rate of 2.625 percent per annum.

The Philippine Government has been issuing RTBs as part of its efforts to support financial inclusion and literacy among Filipinos by making basic investment instruments accessible to the public.

The marketing and issuance of RTBs are in line with the move of the Republic to encourage the country’s unbanked population to open a bank account as well as save and invest their money.

RTBs are generally considered low-risk for investors, allowing them to earn a fixed interest based on prevailing market rates and are paid quarterly during the term of the bond.

Proceeds from the issuance of RTB 24 will be used to aid the country’s efforts to mitigate the effects of COVID-19 and to support the sectors most affected by the pandemic, such as the healthcare system, unemployed OFWs, and the struggling MSMEs.

RTB 24 will also be used to fund the government’s infrastructure projects, refinance existing debt obligations, and other national expenditures, with focus on the government’s efforts to address the current health crisis.

Interested investors of RTBs should have a peso account with selling agent banks accredited by the BTr or a Bonds.PH account.

It is through a Peso bank account or Bonds.PH account that investors will receive their quarterly interest payments and principal amount on maturity.

To invest, one may approach their bank branch of choice, visit the online ordering facility on the BTr website or download the Bonds.PH app and open an account.

The Development Bank of the Philippines and Land Bank of the Philippines are the joint lead issue managers for the 24th RTB offering.

They are joined by 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 Union Bank of the Philippines.