Treasury: Premyo bonds to be sold at interest of 3% per annum

MANILA, Philippines — The Bureau of the Treasury will sell at least P3 billion in one-year “premyo” bonds at a coupon of 3 percent starting Monday until Dec. 13, giving investors a chance to win up to P1 million during the quarterly raffles.

In its notice of offering dated Nov. 22, the Treasury said eligible to invest are individuals, associations (such as non-stock and loans associations as well as employee associations), cooperatives, employee retirement funds, provident funds, and trust entities (except collective investment schemes or CIS, mutual funds, and UITFs).

The public offer period will be until Dec. 13, although it may be terminated earlier than that date “when subscription has reached a level deemed sufficient by the Treasury,” it said.

These premyo bonds will be issued on Dec. 18, hence will mature on Dec. 18 next year.

Each premyo bond will cost P500, and can be bought in such multiples for a maximum of 20,000 bonds or P10 million per bondholder.

The interest rate of 3 percent will be subject to a 20-percent final tax, according to the Treasury.

“Interest on the premyo bonds, to be calculated on a 30/360-day basis, will be paid quarterly in arrears on the last day of each three-month interest period,” the Treasury said.

During the quarterly raffles, one bondholder will win P1 million, while there will be 10 winners of P100,000, and 50 winners of P20,000.

“Winners shall be determined on every cash rewards draw date via randomized selection among all premyo bonds units from eligible bondholders included in the master list of bondholders provided by the Treasury,” it said.

“On every cash rewards draw date, each premyo bonds unit shall be assigned a 20-character electronic rewards number (e-RN) using the cash rewards application system,” the Treasury added.

The Treasury said “a bondholder in possession of multiple premyo bonds units may win multiple times.”

“The winner of the tier one cash rewards may also receive a non-cash reward from participating entities,” it added.

The selling agents included BDO Unibank Inc., BDO Capital and Investment Corp., China Banking Corp., China Bank Capital Corp., Development Bank of the Philippines (DBP), First Metro Investment Corp., Land Bank of the Philippines, and Metropolitan Bank and Trust Co., where online placements may be accommodated by First Metro Securities Brokerage.

The premyo bonds can be purchased online by account holders in state-run lenders DBP and Landbank at a maximum amount of P500,000 per transaction among investors 18 years old and above.

National Treasurer Rosalia V. de Leon had been pitching the premyo bonds as a Christmas gift idea since these IOUs will also be an investment while helping the government raise funds for its priority programs and projects.