Price Auction of Retail Treasury Bonds
The Philippines will have its price setting auction for its retail treasury bond (RTB) issuance this year this August 10 where it is expected to sell a minimum of P25 billion.
Finance Secretary Cesar Purisima, National Treasurer Roberto Tan and issue arrangers signed the terms of offer Wednesday.
The government is offering this debt instrument as one of the modes to increase revenues to finance programs and projects but Tan said they not targeting to sell beyond P100 billion.
“We are not looking at that volume,” he said.
The government has around P70 billion maturing RTBs this year, with P36.467 billion three-year bond already matured last August 1.
On next week’s price setting, the government will sell P10 billion worth each of five and seven-year RTB and P5 billion worth of 10 year bond.
Tan earlier said they will not sell three-year tenor RTBs anymore in a bid to maximize and extend maturity of this debt instrument.
Relatively, First Metro Investment Corp Vice President Juanchito Dispo said they are confident of selling more than P100 billion RTB this year.
He said a road show for this issuance will be done at the Development Bank of the Philippines (DBP) after the auction on Tuesday.