No extension, upsizing of P3-B ‘premyo’ bonds offer seen

Those who wanted to buy premyo bonds better do it sooner than later as the Bureau of the Treasury is not likely to extend the ongoing three-week offer nor upsize the volume.

National Treasurer Rosalia V. de Leon told the Inquirer Friday that the Treasury has “no intention for now” to sell more than P3 billion nor extend the offering beyond Dec. 13 or Friday next week.

As for the offer period, De Leon earlier said the Treasury did not want to burden banks with additional work ahead of the Christmas holidays so an extension was unlikely.

During the first eight days of the premyo bonds sale that started last Nov. 25, small investors already snapped up more than P2 billion worth of the one-year IOUs, De Leon said.

The bulk or 85-90 percent of investors were individuals, she added.

De Leon had also noted an increasing number of online buyers through state-run lenders Development Bank of the Philippines (DBP) and Land Bank of the Philippines (Landbank) as well as First Metro Securities Brokerage Corp.

The other selling agents offering premyo bonds over-the-counter included BDO Unibank Inc., BDO Capital and Investment Corp., China Banking Corp., China Bank Capital Corp., First Metro Investment Corp. and Metropolitan Bank and Trust Co.

Eligible to invest are individuals, associations (such as non-stock and loan 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).

Premyo bonds will give bondholders a chance to win up to P1 million and non-cash prizes such as a condominium unit or a house-and-lot package during the quarterly raffle.

Each premyo bond costs P500 and can be bought in such multiples. A bond will be equivalent to one raffle entry.

However, the Treasury capped the maximum number of tickets per investor to 20,000 bonds worth P10 million.

These premyo bonds will be issued on Dec. 18, hence will mature on Dec. 18 next year. The interest rate of 3 percent will be subject to 20-percent final tax.

According to De Leon, the Treasury “would like to do it again, but, of course, we hope that [this premyo bonds sale] would really be.”