The Bureau of the Treasury has raised a record P516.3 billion from the sale of five-year retail treasury bonds (RTBs) dubbed “Progreso bonds” to small investors despite the COVID-19-induced recession.
National Treasurer Rosalia V. de Leon on Friday said P488.5 billion represented new money from fresh sales, while P27.8 billion came from switch subscriptions.
The government’s 24th RTB issuance and the Duterte administration’s seventh offering allowed swapping with four soon-to-mature IOUs.
The RTBs maturing in 2025 were sold in multiples of P5,000 from July 16 to Aug. 7 at a coupon rate of 2.625 percent. Settlement will be on Aug. 12.
“Strong market liquidity conditions supported healthy demand for the RTBs,” De Leon said.
“Market liquidity, great timing and our attractive interest rate were the drivers of success for this year’s offering of RTBs. As our economy expands and more people become financially capable to save, it is rewarding for the Treasury to see a wider set of the public put their trust in our almost annual fundraising exercise,” De Leon added.
This latest offering allowed purchasing RTBs via UnionBank of the Philippines’ mobile app Bonds PH, which was made available on both Android and iOS devices.
“The Bonds PH mobile app got nearly 25,000 downloads from 85 countries. Around 80 percent of more than 2,500 transactions made through the app are P10,000 and below,” De Leon said.
These RTBs were also sold through the online ordering facilities of China Bank, Development Bank of the Philippines, First Metro Securities and Brokerage Corp., Land Bank of the Philippines as well as Overseas Filipino Bank.
De Leon had said that the money to be raised from selling the RTBs would be used as budgetary support and at the same time provide a more secure investment in government securities for retail buyers. —BEN O. DE VERA INQ