Investors make beeline for fresh RTBs; gov’t raises P463.3B

The Bureau of the Treasury has raised P463.3 billion from its latest issuance of three-year retail treasury bonds (RTBs), proceeds of which will be injected into the budget to finance the country’s fight against COVID-19.

National Treasurer Rosalia de Leon on Thursday said new money from the fresh RTB sales amounted to P411.8 billion, while P51.5 billion were switched by investors with their bond holdings maturing this year.

The RTBs, sold from Feb. 9 to March 4, were offered to small investors in multiples of P5,000 through banks, online channels and mobile apps. Settlement will be on March 9.

The bonds will mature in 2024 at a coupon rate of 2.375 percent.

More buyers

De Leon said this latest RTB sale attracted more buyers online and through apps compared to previous issuances.

The government’s 25th overall and the Duterte administration’s eighth RTB issuance “demonstrates increasing awareness of retail investors on government securities not only as safe and convenient investment, particularly with easy access to mobile applications,” De Leon said.

“Moreso, [it’s a] way of contributing to a strong and inclusive economic rebound,” she added.

Last year, the Treasury issued a record-high P516.3 billion in five-year RTBs called “progreso bonds” at a coupon rate of 2.625 percent amid a pandemic-induced recession.

RTBs formed part of the Treasury’s domestic fundraising for 2021; the national government had programmed to borrow P2.58 trillion locally by selling T-bills and bonds.

In all, the Philippines will borrow a gross record amount of P3.03 trillion this year, with the bulk to be sourced from the domestic debt market which some deem less risky and still oozing with cash.