P30-B retail T-bonds up for Public auction

By Mary Grace Padin (The Philippine Star) Updated March 24, 2017 – 12:00am http://www.philstar.com/business/2017/03/24/1683926/p30-b-retail-t-bonds-public-auction MANILA, Philippines –  The government will sell P30 billion in three-year retail treasury bonds (RTB) to the general investing public next week, the Bureau of the Treasury (BTr) announced yesterday. The three-year fixed retail bonds will be offered to small investors for a minimum denomination of P5,000 from March 28 to April 6, 2017. Issuance will be on April 11, 2017. Retail treasury bonds form part of the government’s funding program and are aimed to promote financial literacy and inclusion in the country. “We want more Filipinos to get into the habit of investing and become more financially aware of how their money could work harder for them,” National Treasurer Rosalia de Leon said in a statement. According to the BTr, RTBs offer an opportunity for the investing public to access affordable and higher-yielding financial instruments as compared to regular time deposits. “Moreover, the RTBs’ low-risk nature and three-year tenor makes this investment product more attractive to any Filipino who would want to get into the habit of investing,” it said. RTBs earn a fixed interest rate based on prevailing market rates, with coupons paid quarterly. “The final interest rate will be determined through a Dutch auction to be participated in by GSEDs (government securities eligible dealers),” the BTr said in its notice of offering for the P30 billion RTBs. The BTr tapped First Metro Investment Corp. and Land Bank of the Philippines as joint lead issue managers, while BDO Capital and Investment Corp, BPI Capital Corp., Development Bank of the Philippines, China Bank Capital Corp. and SB Capital Corp. will serve as joint issue managers for the offering. The Bureau said it will also conduct roadshows in key cities –  including Metro Manila, Baguio, Batangas, Cagayan De Oro, Cebu, Davao, Iloilo, Pampanga and Legazpi – to inform the public of the RTB issuance. This will be the 19th RTB offering of the Philippine government, and the second batch under the Duterte administration. The last RTB auction was held last September 2016, with P100 billion in total securities issued, more than thrice the original P30 billion offering.