Gov’t raises P49.6B from sale of RTBs

The Bureau of the Treasury on Monday raised a total of P49.62 billion in retail treasury bonds (RTBs) through a price-setting auction for 15- and 20-year debt paper.

The Treasury awarded P16.32 billion in 15-year bonds with a coupon of 5.375 percent and P33.3 billion in 20-year RTBs at 5.875 percent.

Investors tendered a total of P53.77 billion for both tenors, more than the total offer of P40 billion.

Buyers made available P18.42 billion for the 15-year RTBs, which was less than the P20 billion on offer, and P35.35 billion for the 20-year RTBs, which was almost twice the P20-billion offer.

Now that prices have been set, the RTBs will be offered to the public—including individuals, corporations and trust funds—until February 29.

RTBs, one of several ways in which the government raises funds, is called retail because at a minimum investment of P5,000, even individuals can buy the securities.

Interest is paid every quarter, but the amount is subject to a 20-percent withholding tax.

Treasury bonds are considered safe investments because these are fully backed by the government, which usually does not renege on its financial obligations.

Also, the RTBs are a liquid investment because these can be traded in the secondary market before maturity.

Deputy National Treasurer Eduardo S. Mendiola said in an interview that officials were doing a road show in various cities across the country to promote the RTBs during the offer period.

The road show covers Baguio, Laoag, Clark in Pampanga, Makati, Davao, Cebu, General Santos and Iloilo.

“There is no limit to the amount that the selling agents could offer to the public,” Mendiola said.

Roberto Juanchito Dispo, president of authorized selling agent First Metro Investment Corp. (FMIC), said in an interview that the 15th RTB outing could “easily top the P110 billion raised (in the previous RTB issuance) last year.”

Other sellers include Allied Bank, BDO Capital and Investment Corp., Banco de Oro Unibank, BPI Capital, China Bank, Chinatrust (Philippines) Commercial Bank Corp., Citibank, Deutsche Bank, Development Bank of the Philippines, East West Bank, First Metro Investment Corp., HSBC, ING Bank, Land Bank, Maybank Philippines Inc., Metrobank, Philippine National Bank, Philippine Veterans Bank, Rizal Commercial Banking Corp., Robinson Bank, Security Bank, Sterling Bank of Asia and VICSAL Investment Inc.

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