Sale of P30B in 3-year RTBS eyed

The Bureau of the Treasury will sell at least P30 billion in three-year retail treasury bonds (RTBs), the government’s 23rd foray overall and the Duterte administration’s sixth issuance of securities targeting small investors.

In a Jan. 24 notice of offering signed by National Treasurer Rosalia V. de Leon, the Treasury said the rate-setting auction and start of offer would be on Jan. 28.

The offer period will be until Feb. 6, with settlement on Feb. 11.

In a text message last Friday, De Leon said the Treasury wanted to take advantage of “good liquidity onshore.”

The Philippines this month also sold 1.2 billion euros in euro-denominated bonds, its first offshore commercial borrowing for the year.

In March last year, the government sold P235.9 billion in five-year RTBs at a coupon of 6.25 percent.

The government had programmed to borrow a record P1.4 trillion this year, of which the bulk or P1.05 trillion will come from domestic sources such through as RTBs, T-bills, T-bonds, and “premyo” bonds.

Of the planned foreign borrowings, $3.5 billion will be commercial or through debt paper issuance, while about $3 billion will come from program and project loans to be extended by bilateral development partners as well as multilateral lenders. —BEN O. DE VERA INQ