THE GOVERNMENT will offer P25 billion worth of retail treasury bonds (RTBs) through a price-setting auction set on Aug. 10, according to a group of banks jointly arranging the issuance.

Roberto Juanchito Dispo, First Metro Investment Corp. executive vice president, Wednesday said P10 billion would be in five-year RTBs, another P10 billion in seven-year securities and the remaining P5 billion in 10-year notes.

Dispo said the banks were confident that they could raise more than P114.4 billion for the latest RTB float, referring to the total amount that was issued in 2009.

Aside from FMIC, the joint arrangers include BDO Capital, BPI Capital, DBP, Landbank, Metrobank, PNB and RCBC.

The latest offering is the 12th RTB batch since 2001 when the government raised some P15 billion.

Documents from the Bureau of the Treasury showed that the government raised P550 billion from the 11 previous RTB issuances.

In a signing ceremony between the Treasury and bank officials yesterday, Finance Secretary Cesar V. Purisima expressed reluctance in allowing the new RTB issuance to exceed P100 billion.

Even then, Purisima said the timing for yet another RTB float was favorable to the government considering a bullish outlook from investors.

?We?ve had a peaceful transfer of power and this [new administration] does not have credibility issues,? the finance chief said.

?We need to [raise funds and] address the need for infrastructure that will help the country become more competitive in the region, especially amid efforts toward economic integration in Southeast Asia,? he added.

However, Purisima said there was no need to raise a big amount from the RTBs since the government was also planning a peso-denominated bond offering for the international market.

He said the so-called ?peso global bond? offer would be worth at least $500 million and slated before the year ends.