Bureau of the Treasury sells P100B in RTBs

The government has sold a total of P100 billion in retail treasury bonds (RTBs) – more than triple the minimum offering – which the Bureau of the Treasury will settle today.

In a statement Monday, the Treasury said the additional P35 billion to the P65 billion accepted at the coupon-setting auction on Sept. 6 was a result of “considerable demand for the securities in the order books of the authorized selling agents” during the public offer period and roadshows conducted nationwide from Sept. 6-16.

The fixed interest rate for the 10-year debt paper maturing in September 2026 was earlier set at 3.5 percent. The minimum offering was P30 billion.

National Treasurer Roberto B. Tan told reporters in an interview that the total amount of RTBs issued was “expected,” as the Treasury was “confident of achieving that, especially under an administration that’s very credible.”

The official said the expanded issuance aims to ensure that the RTB attains its goals of reaching a wide investor base, promoting savings and investment consciousness among Filipinos, and mobilizing domestic savings.

The funding exercise forms part of the financing program to meet the government’s requirements as it aims to increase infrastructure spending and improve the provision of social services.

“These are key points in the administration’s socioeconomic agenda in which investors have shown confidence, as evidenced by the high demand this issuance has garnered,” the Treasury said.

The proceeds of the 18th RTB tranche of the Philippine government will be used as “buffer” to finance projects to be rolled out for the rest of the year, Tan said.

The RTBs were sold in denominations of P5,000 to individuals, corporations (except state-run firms), financial institutions as well as institutional investors. Interest payments will be quarterly.

The fixed rate bonds were sold by 15 selling agents: Banco de Oro Universal Bank, China Banking Corp., Citibank N.A., Development Bank of the Philippines, East West Banking Corp., Land Bank of the Philippines, Metropolitan Bank and Trust Co., Philippine Bank of Communications, Rizal Commercial Banking Corp., Security Bank Corp., ING Bank, BPI Capital Corp., First Metro Investment Corp., Robinson Bank Corp., and BDO Capital and Investment Corp.