BTr set to issue P121.8B worth of retail treasury bonds

By PR |June 11,2018 - 10:38 PM

WITH the first offering of retail treasury bonds (RTBs) for 2018 being met with strong demand from the investing public, the Bureau of Treasury (BTr) is set to issue P121.8 billion worth of three-year RTBs, following the offer period from May 30 to June 8, 2018.

According to the BTr in a statement, the first offering for RTBs this year had a total issue size four times more than the initial planned issuance of P30 billion.

It awarded P66 Billion during the auction set last 30 May and an additional P55.8 billion was raised during the public offer period from May 30 to June 8. The BTr conducted roadshows in key cities nationwide to inform interested investors on the terms and benefits of the investment product.

“As with the past issuances of RTBs, we are glad to have generated strong and continued support from the general investing public. We are encouraged by the results of this latest offering, as this is proof that more and more Filipinos are getting into the habit of investing, while doing their share in nation-building,” said National Treasurer Rosalia V. De Leon in a statement.

Proceeds from the issuance of RTBs, which are part of the government’s proactive financing strategy, will help fund its massive infrastructure program. The BTr had earlier noted that this latest offering of RTBs was being made available to Filipinos amid favorable macroeconomic conditions.

“We are also delighted to instill good financial habits for many Filipinos. Through RTBs, many individuals are now investing to achieve their financial goals—proof that beneficiaries of RTBs range from individuals to families to the entire nation,” said Treasurer De Leon.

“When more Filipinos invest, they are indeed primed to take advantage of opportunities and adventures that come their way. This is the spirit behind our campaign, ‘#RTBparaReadyTayoBukas.’”

Land Bank of the Philippines was the Lead Issue Manager for the 21st RTB offering. BDO Capital & Investment Corporation, BPI Capital Corporation, Development Bank of the Philippines, Metropolitan Bank and Trust Company, and SB Capital Investment Corporation were the Joint Issue Managers.

In the Cebu leg of the BTr roadshows last June 1, Dennis Laurence Yu, Metrobank vice president, cited the objective of issuing RTBs, which was to promote financial literacy to the Filipino through RTBs that could provide a risk free investment option to the people.

“(Rtb) a gateway investment product that is perfect for those who are thinking about investing for the first time” said Yu.

“RTB is also designed to engage the public in participating in development in helping fund projects nationwide” he added.

The 21st RTB offering which ended on June 8 had a maturity of three years with a minimum investment of P5,000. The offering from May 30 to June 8 had a 4.875 interest.

Erwin Sta. Ana, BTr 7 deputy treasurer, for his part, said that RTB program helps support the key social economic programs across various administration.

Sta. Ana also said in an interview that Cebu is a good market for retail investors.

“We’ve seen a steady growth in terms of take up from Cebu investors thats why we always make sure that we go here because the potential is really high” said Sta. Ana./with CNU Intern Nikki Villagorda

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