The Bureau of the Treasury will auction off an initial P30 billion in five-year retail treasury bonds (RTBs) on July 16 before making these available to small investors on a new app and more online channels.
On top of selling to new investors, the Treasury will also swap the new fixed-rate RTBs with two previously issued 10-year RTBs maturing on Aug. 19 and March 3 next year and two fixed-rate treasury notes (FXTN) maturing on Aug. 20 and March 20, 2021, according to a notice posted on the Treasury website on Friday (July 10).
Following the rate-setting auction set on Thursday next week, the RTBs maturing in 2025 will be offered until Aug. 7 or at an earlier date determined by the Treasury. Settlement will be on Aug. 12.
The RTBs will be sold to small investors in multiples of P5,000.
For the first time, RTBs can be purchased via UnionBank of the Philippines’ mobile app BONDS.PH, which National Treasurer Rosalia V. de Leon said will be available on both Android and iOS mobile devices.
These RTBs will also be made available online from these banks and authorized dealers:
- China Banking Corp. (China Bank)
- Development Bank of the Philippines (DBP)
- First Metro Securities and Brokerage Corp.
- Land Bank of the Philippines (Landbank)
- Overseas Filipino Bank (OFBank).
The same general rules apply to investors who will purchase through the app and online channels, including the minimum investment amount of P5,000 and passing the know-your-client requirement before placing orders.
For those who will use BONDS.PH, payment options included:
- InstaPay
- PESONet
- GCash
- PayMaya
- other payment facilities available in the app
De Leon said the BONDS.PH app will be live early next week.
The app and online facilities can accept a maximum purchase of P500,000 per transaction.
This will be the Duterte administration’s seventh RTB issuance and the Treasury’s 24th overall.
De Leon said the money to be raised from selling these RTBs will be used as budget support.
At the same time, RTBs were being pitched as a secure investment for individuals and small groups.
Last February, the Treasury issued a record P310.8 billion in three-year RTBs at 4.375 percent, despite a shortened offer period amid robust demand from small investors.