Treasury eyes P30 billion from small investors

MANILA, Philippines  -Retail Treasury Bonds (RTB) are back yet again as the national government intends to raise at least P30 billion from the 30th issue of the medium-term debt paper to support this year’s spending program.

In a notice posted on its website on Tuesday, the Bureau of the Treasury (BTr) set the offer period for the five-year “RTB 30” aimed at small investors on Feb. 13 to Feb. 23, with the issue date slated on Feb. 28.

Holders of previously issued RTBs, specifically those that are maturing in early March this year, may exchange their old securities with the upcoming ones during the offer period.

Based on Bloomberg’s estimate, the state had about P700 billion in outstanding RTBs that would have to be settled in March.

READ: Fresh retail T-bond offer coming to market

The BTr made the announcement on the same day it rejected P53.4 billion worth of bids for reissued five-year T-bonds, as local creditors asked for higher rates.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the upcoming RTB sale gave the BTr “flexibility” to reject all tenders for the usual T-bonds.

The new RTB sale is part of plans to borrow a total of P2.46-trillion from creditors at home and abroad this year.

RTBs have become one of the government’s go-to sources of local borrowings to help plug its budget gap, which is projected at P1.4 trillion this year. INQ