First-ever retail dollar bonds for sale starting September 15, says Treasury

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MANILA, Philippines — The Bureau of the Treasury will start selling the first-of-its-kind retail dollar bonds to small investors here and abroad starting Wednesday, September 15, in a bid to raise at least $400 million (about P19.9 billion) to beef up the COVID-19 war chest.

In a notice of offering issued to all government securities eligible dealers (GSEDs) on Monday, National Treasurer Rosalia de Leon said the retail onshore dollars bonds will be issued in two tenors: five- and 10-year.

After the rate-setting auction on Wednesday, these bonds maturing in 2026 and 2031 will be offered until October 1. The settlement will be on October 8.

Retail investors can purchase the bonds in minimum denominations of $300, and multiples of $100 thereafter, the Treasury said.

The Treasury will make these bonds available through online channels such as the ordering facility on its website, as well as the mobile banking applications of Land Bank of the Philippines (Landbank), Overseas Filipino Bank (OFBank), and Union Bank of the Philippines’ BONDS.PH app.

Those who will purchase the bonds online “can make as many transactions as they may desire, provided that a minimum amount of $300 and a maximum amount of the dollar equivalent of P500,000, shall be accepted per transaction,” as long as orders beyond the minimum investment will be in multiples of $100, the Treasury said.

The Treasury earlier planned to issue retail dollar bonds in mid-August, but it had postponed the offering when Metro Manila reverted to the most stringent enhanced community quarantine (ECQ) last month.

Prior to this issuance, the Treasury hosted webinars for Filipinos living or working overseas to pitch the RDB as a viable investment.

De Leon had said that the proceeds from the sale of retail dollar bonds will be spent on COVID-19 response amid the prolonged pandemic.

In 2012, the Treasury issued $500 million in 10.5-year US dollar-denominated bonds onshore, but these were sold only to government financial institutions (GFIs) and institutional investors.