Government raises P84.9 billion from retail bonds
The national government raised an initial P84.9 billion from its latest retail Treasury bond offering, with investor demand exceeding the original offer by more than six times.
Manila, Philippines — The Philippine national government generated an initial P84.9 billion from its latest retail Treasury bond (RTB) offering, with investor interest surpassing expectations sixfold. The Bureau of the Treasury (BTr) issued P84.89 billion worth of 2.5-year RTBs at a 6.875 percent coupon rate. Tenders exceeded the initial P30-billion offer by 6.3 times, reaching P188.637 billion.
RTBs are government debt securities enabling individual investors to lend money to the government and earn a fixed return. National Treasurer Sharon Almanza forecasts the government will raise around P150 billion in new funds from the offering, pending investor appetite. The P84.9 billion RTB 32 offering commenced yesterday and concluded on October 7, subject to BTr discretion.
Minimum investments are P5,000, with subsequent increments also in P5,000. The 2.5-year maturity is chosen to commemorate the RTB's 25th anniversary while aligning with current market conditions. Investor demand is primarily focused on shorter to medium-term maturities, making the 2.5-year segment favorable for the Treasury. The coupon rate, set at 6.875 percent, is paid quarterly.
Finance Secretary Frederick Go emphasizes RTBs as a vital channel for public participation in the domestic capital market and a means to finance government needs. Since the program's inception in 2001, RTBs have raised over P6 trillion for the national government. Go highlights the expanding accessibility of government securities through digital platforms and channels.
The Treasury is also considering another liability management exercise before year-end, potentially involving debt exchanges or switches to manage the government's maturity profile and borrowing costs.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
