P70B in retail treasury bonds sold to banks

The Bureau of the Treasury sold P70 billion in three-year retail treasury bonds (RTBs) to banks in an auction held yesterday.

The auction for the government’s 19th RTB issuance generated P86.172 billion in tenders, almost triple the minimum offering of P30 billion.

The coupon rate was set at 4.25 percent for the bonds maturing on April 11, 2020, higher than the 3.5 percent yield for the 10-year RTBs sold in September last year.

In a statement, the Treasury said the award of more than double the minimum offering was made to “accommodate market appetite.”

The RTBs will be made available to the general investing public until April 6.

The RTBs, according to the Treasury, can be bought throughout the offer period from any of the 17 qualified selling agents, namely: Banco de Oro Universal Bank, BDO Capital and Investment Corp., BPI Capital Corp., China Banking Corp., Citibank N.A., CTBC Bank (Philippines) Corp., Development Bank of the Philippines, First Metro Investment Corp., ING Bank, Land Bank of the Philippines, Metropolitan Bank and Trust Co., Philippine Bank of Communications, Philippine National Bank, Rizal Commercial Banking Corp., Security Bank Corp., Standard Chartered Bank, and United Coconut Planters Bank.

“Now on its 19th issuance, the RTB has provided invaluable contributions and made a difference. For the government, it has evolved as a staple platform in the government’s financing program, allowing us to achieve twin objectives of inward bias to take advantage of ample domestic liquidity and reduce foreign exchange exposure. At the same time, help inculcate good money habits by providing access to an affordable and secure instrument that yields favorable returns to help achieve one’s goals,” National Treasurer Rosalia V. De Leon said.

The Treasury will hold roadshows promoting the RTB offering in Davao City and Lipa City on March 29; in Baguio City and Cebu City on March 30; Clark Freeport Zone and Iloilo City on March 31, and Cagayan de Oro City and Legazpi City on April 3.

For this RTB offering, the Treasury tapped First Metro Investment Corp. and state-run Land Bank of the Philippines as joint lead issue managers.—DORIS DUMLAO-ABADILLA