Gov’t raises P458 billion from latest RTB offering
THE GOVERNMENT raised P457.8 billion via its offer of five-year retail Treasury bonds (RTBs) that ended on Monday.
The Bureau of the Treasury (BTr) said P457.4 billion of the total amount raised was fresh funds or “new money.” The remaining P259.5 million was from the bond exchange program. It was the 27th issuance of RTBs, and the first this year.
“By our funding activities in the domestic space, we are shielding our debt portfolio from volatility in the global financial markets, all while taking advantage of the commitment of the Bangko Sentral ng Pilipinas of supporting the country’s economic recovery,” National Treasurer Rosalia V. de Leon said in a statement on Tuesday.
The bond offer was launched on Feb. 15, with the Treasury raising an initial P120.764 billion from the rate-setting auction.
The retail Treasury bonds fetched a coupon rate of 4.875%, with settlement on March 4. The maturity date is March 4, 2027.
A bond trader said demand was within the expected range.
“It could have been more if not for the external factors during the offer period,” the trader said via Viber. External factors include the oil price surge and the anticipated US Federal Reserve rate hike this month.
Proceeds from the issuance would be used to fund coronavirus disease 2019 (COVID-19) recovery plans, the BTr said.
The five-year bonds were sold in denominations of at least P5,000 and in multiples of P5,000 thereafter.
Holders of fixed-rate Treasury notes maturing on March 14 and July 4 also swapped their holdings for the RTBs. The minimum exchange offer was P5,000.
The Treasury offers retail bonds to small investors who want low-risk, higher-yielding savings instruments backed by the National Government.
“The BTr’s pursuit of financial literacy and inclusion continues to be the backbone of many of our investor-centered initiatives,” Ms. De Leon said.
“This year, we strive to improve not only our ordinary investors’ access to government securities but to also help them understand the value behind developing a habit of investing.”
In November 2021, the government raised P360 billion from its offering of five-and-a-half-year RTBs. Of the total amount, P330.5 billion was raised from fresh funds, while the rest was from the bond exchange program.
It was the Treasury’s second RTB offering of 2021 after it raised P463.3 billion from three-year retail debt in February. — Jenina P. Ibañez
