Government raises 360 billion pesos via RTBs at strong investor demand

The GOVERNMENT has raised P360 billion through its offuh from FiRetail five-and-a-half-year Treasury Bonds (RTBs) which ended Friday amid strong demand from investors looking for higher yields.

The Treasury Office (BTr) said in a statement on Monday that 330.5 billion pesos of the total amount raised was fresh funds or “new money”, while the remaining 29.5 billion pesos came from the program. bond exchange.

The 26the The issue is the Treasury’s second RTB offering of the year after raising 463.3 billion pesos from three-year retail papers in February.

“The healthy macroeconomic environment, characterized by sufficient domestic market liquidity and a downward trend in inflation, supported our third retail issue, or the second peso-denominated jumbo offer for the year,” said the national treasurer Rosalia V. de Leon in a statement on Monday.

The bond offering was launched on November 16 and the Treasury raised an initial sum of 113.545 billion pesos in the rate auction.

The RTBs obtained a coupon rate of 4.625%. They will be issued on December 2 and will expire by 2027.

A bond trader in a Viber message said demand for the RTB offering was strong as almost the entire investor base – from banks to retail investors – showedFilittle interest because of the relatively good rate compared to papers in the secondary market.

“This Offering had mutual benefitFit both for investors and for the national government, because the market is always very armed with liquidity and always looking for yield. If you ask me, demand has exceeded expectations for this show.

The FiThe five-and-a-half-year RTBs were sold in denominations of at least 5,000 pesos, and in multiples of 5,000 pesos thereafter.

The BTr also opened a bond exchange offuh, where the holders of FiFixed rate treasury bills maturing in 2022 can swap their holdings for new RTBs. The minimum exchange offuh was P5,000.

The Treasury offers retail bonds to small investors who want lower risk, higher yield savings instruments backed by the national government. To reach overseas Filipinos, the office also worked with the Department of Foreign Affairs to organize RTB investment webinars.

The BTr said the show’s proceeds would be used to fund government pandemic response and economic stimulus programs.

“With the digital platforms that we have introduced in recent years, we have also seen how more and more Filipinos are making a habit of investing their hard-earned money to secure the future not only of themselves, but also of their relatives. “said Ms. De Leon.

“At BTr, we will continue to introduce new products and channels in the future to enable our individual investors to diversify their personal portfolios, as well as reduce friction costs and barriers to investment. “

Issue managers for RTBs include Land Bank of the Philippines, Development Bank of the Philippines, BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., PNB Capital and Investment Corp., and UnionBank of the Philippines, Inc.

The national government’s gross borrowing reached 2.7 trillion pesos at the end of October as it continued to raise funds for its response to the pandemic.

The government borrows from local and foreign creditors to Fifinance the budget ofFicit which has widened since last year after the pandemic crippled the economy and reduced tax revenues. – Jenina P. Ibañez

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