Gov’t to sell at least P30B in RTBs

The government will sell at least P30 billion in 10-year retail treasury bonds (RTBs) next week, the Bureau of the Treasury announced Friday.

This will be the Duterte administration’s first debt offering aimed at small investors, and the 18th RTB tranche of the Philippine government.

The fixed rate bonds maturing in 2026 will be auctioned off on Sept. 6, National Treasurer Roberto B. Tan said in a notice of offering posted on the Treasury website.

The public offer period spans Sept. 6 to 16. Issuance will be on Sept. 20.

According to the Treasury, “the final interest rate will be determined through a Dutch auction to be participated in by government securities eligible dealers (GSEDs).”

As guidance, the interest rate will be “based on current market levels of comparable securities rounded down to the nearest one-eighth of 1 percent,” the Treasury said.

Interest payments will be quarterly.

The RTBs will be issued in scripless form, the Treasury said, adding that these will be sold in minimum denominations of P5,000 during the public offer period.

The Philippine government last issued RTBs in 2013, during which P150 billion was raised at 3.25 percent.

The RTBs maturing on 2023 were oversubscribed by 906 percent, such that the Treasury sold five times the minimum offering of P30 billion. RAM/rga

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