Latest Stories

Gov’t raises P150B from sale of RTBs

Offer period cut short as demand exceeded P30-B target



The government ended Monday the offer period for retail treasury bonds (RTBs) after raising P150 billion from the sale of the popular debt paper.

The offer period, within which banks acting as government securities eligible dealers (GSEDs) may buy RTBs from the Bureau of the Treasury, was originally scheduled to run from July 30 to August 13. However, the Treasury decided to cut short the offer period given that the amount raised has exceeded expectations. The government originally intended to raise only P30 billion from this year’s sale of RTBs.

“We have raised P150 billion from the sale and we are ending it there,” De Leon told reporters Monday. However, De Leon said banks have until August 13 to sell to the public the RTBs they have bought.

The RTBs carry a 10-year maturity and a yield of 3.25 percent.

“We are extremely pleased with the outcome of the RTB issuance. This reflects how liquid the market is and how people are becoming more aware of the value of investing,” De Leon noted.

She said a big portion of the funds withdrawn from special deposit accounts (SDAs) at the central bank was believed to have boosted demand for RTBs. The Bangko Sentral ng Pilipinas recently issued a directive prohibiting retail funds from its SDA facility. De Leon said this prompted fund owners to shift to government securities like the RTBs.

De Leon said banks were required to sell at least 20 percent of the RTBs they bought—net of RTBs they sold to government-owned corporations—to retail buyers to ensure that the objective of the RTB offering of providing investment opportunities to small individual investors was achieved.

De Leon said banks that would fail to comply with the directive would get “demerits,” which could affect their ability to buy RTBs in future offerings of the government.

She said that of the P150 billion worth of RTBs sold to banks, P26.88 billion was allocated to government-owned corporations.

Proceeds from the sale of the RTBs will be used largely to pay for the government’s maturing obligations and partly to help fund the government’s projected budget deficit of P200 billion this year.

The government has held RTB offerings annually. Last year, the government raised P188 billion from the sale of RTBs.

Unlike regular government securities, RTBs are fit for small and individual investors because the minimum investment is just P5,000.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , fund raising , Government , retail treasury bonds

  • joboni96

    intsik switik banks na naman
    kumana dyan

    using cheap pilipino money deposits
    earning less than 1% interest per annum

    dapat ilinya na itong mga hunghang
    na government finance managers kuno


  • ChinaObserver

    This article fails to identify who De Leon is. A failure in copy editing or proof reading. Shape up PDI!

    • Siako Estrangero

      LOL yes… maybe that’s Joey de Leon or my drunkard neighbor Bong de Leon or he can be she. hahahah!

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Tagle: Christ’s resurrection a message of hope to faithful
  • Aquino vows to intensify anti-corruption drive further
  • Unease in Vatican over cardinal’s luxury flat—report
  • Nepal calls off search for missing guides on Everest—official
  • Pope’s Easter Message ‘Urbi et Orbi’
  • Sports

  • Rain or Shine grabs No.4, sends Ginebra to 8th
  • Red-hot Alaska rips injury-depleted San Mig Coffee
  • Pacquiao courtesy call to Aquino set for Monday
  • Nick Calathes suspension a reminder of supplement risk
  • Teague scores 28 as Hawks soar past Pacers in Game 1
  • Lifestyle

  • Angono petroglyphs in danger of disappearing
  • Britain’s baby Prince George visits Australian zoo
  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Entertainment

  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Aquino, Obama to tackle US pivot to Asia during state visit
  • Asia seeks Obama’s assurance in territorial spats
  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Marketplace