Small investors gobble up RTBs, raise record P516.3B despite pandemic

MANILA, Philippines—The Bureau of the Treasury has raised a record P516.3 billion from the sale of three-year retail treasury bonds (RTBs) dubbed as “progreso bonds” to small investors despite a COVID-19-induced recession.

National Treasurer Rosalia V. de Leon on Friday said P488.5 billion was 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 2023 were sold in multiples of P5,000 from July 16 to Aug. 7 at a coupon rate of 2.625 percent. These will be settled 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,” she said.

“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 fund raising 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 app was downloaded 25,000 times in 85 countries, De Leon said. At least 80 percent of more than 2,500 transactions made through the app was worth P10,000 or less, De Leon added.

The RTBs were also sold through the online ordering facilities of:

• China Banking Corp. (China Bank)
• Development Bank of the Philippines (DBP)
• First Metro Securities and Brokerage Corp.
• Land Bank of the Philippines (Landbank)
• Overseas Filipino Bank (OFBank)

The selling agents were:

• Asia United Bank
• Australia and New Zealand Banking Group Ltd.
• Banco De Oro Unibank Inc.
• Bank of Commerce
• BDO Capital and Investment Corp.
• BDO Private Bank
• BPI Capital Corp.
• China Bank
• Citibank NA
• CTBC Bank (Philippines) Corp.
• DBP
• East West Banking Corp.
• First Metro Investment Corp.
• ING Bank
• Land Bank of the Philippines
• Maybank Philippines Inc.
• Metropolitan Bank and Trust Co.
• Philippine Bank of Communications
• Philippine National Bank
• Rizal Commercial Banking Corp.
• Robinsons Bank Corp.
• Security Bank Corp.
• Standard Chartered Bank
• The Hong Kong and Shanghai Banking Corp. Ltd.
• UnionBank

De Leon had said that the money to be raised from selling these RTBs will be used for budgetary support, while also providing a more secure investment in government securities for retail buyers.

TSB