Philippine Retail Treasury Bonds for Sale

Posted by Breaking News on February 10th, 2012 in Articles

By Joann Santiago

The government sold a total of P110 billion worth of 10- and 15-year Retail Treasury Bonds (RTBs) at the end of the offer period Monday.

This is higher than the P104 billion gained by the government during its previous RTB sale last March.

The Bureau of the Treasury (BTr) sold a total of P54.97 billion worth of the 10-year bond and P55.12 billion worth of the 15-year RTB, National Treasurer Roberto Tan said.

The Treasury sold P20 billion worth of this debt instrument during the price setting auction Monday last week, wherein the 10-year paper fetched a coupon rate of 5.750 percent and the 15-year a coupon rate of 6.250 percent.

Tan said they were able to raise P31.4 billion through subscriptions from selling agents during the offer period while P5.64 billion was sold to government-owned and controlled corporations (GOCCs) through BTr’s over-the-counter window.

“The residual of P53 billion was sold to BSP (bond sinking fund) to secure NG’s (national government’s) maturing obligations covered by the sinking fund,” he said.

RTBs are named as such because they are intended for small investors as minimum placement is P5,000.

The government has mandated BPI Capital, First Metro Investment Corp. (FMIC), BDO Capital, Metropolitan Banking Corp. (Metrobank), and Land Bank of the Philippines (Landbank) as arrangers for the bond sale.

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