5-year RTBs available through DBP, Landbank websites starting Feb 26

MANILA, Philippines – Interested small investors can buy retail treasury bonds (RTBs) online from two state-run lenders starting Tuesday, February 26, with the Bureau of the Treasury offering an initial P30 billion in five-year IOUs.

In a February 18 memorandum to all government securities eligible dealers (GSEDs), National Treasurer Rosalia de Leon canceled the scheduled T-bills and T-bonds auctions on February 26 and 27, respectively, to give way to the Philippine government’s 22nd RTB issuance to date.

“The RTB sale is part of our funding program. This is also to enable small investors access to government securities,” De Leon said in a text message to reporters.

In a February 21 notice of offering to GSEDs, Deputy Treasurer Erwin D. Sta. Ana said a minimum of P30 billion in RTBs due 2024 will be offered during the rate-setting auction on February 26.

The debt paper will be sold in multiples of P5,000.

The offer period will be until March 8 or an earlier date as determined by the Treasury.

The RTBs will be settled on March 12.

For this RTB sale, the Treasury will introduce a new online ordering facility where investors can purchase between P5,000 and P500,000 in bonds.

The Treasury said RTB Online GSEDs were the Development Bank of the Philippines (DBP) and Land Bank of the Philippines (Landbank).

Investors buying online must be 18 years old and above when he or she makes the order through the websites of DBP (www.devbnkphl.com) and Landbank (www.landbank.com).

Also, clients must have existing and active individual peso deposit (current/savings with online access) accounts with DBP and Landbank.

Accounts with joint, “in-trust-for” and “by” cannot be accommodated.

Orders as well as payments for RTBs will be accepted from 2 p.m. of February 26 until 12 noon of March 8.

Interested online buyers must completely fill out the ordering facility, as orders will not proceed if fields would be left blank.

This will be the Duterte administration’s fifth RTB sale during its first three years in office.

In June last year, the government issued P121.8 billion in three-year RTBs at 4.875 percent.

In December 2017, the Treasury raised P255.4 billion from RTBs, the largest issuance to date, selling five-year debt paper at 4.625 percent.

In April 2017, the Treasury sold P181 billion in three-year RTBs at a coupon of 4.25 percent.

In September 2016, the Treasury issued P100 billion in 10-year RTBs at a 3.5-percent yield. /kga