Financial IQ: Philippines Retail Treasury Bonds offered on August 2010 - Part 1 of 2

I read an advertisement on Philippine Star (dated August 11, 2010) about an offering of Philippines Retail Treasury Bonds.


What is a Retail Treasury Bond?

• The Philippine Retail Treasury Bond (RTB) is a direct and unconditional obligation of the Philippine government generally considered a safe and liquid investment opportunity. The RTB, issued by the Bureau of Treasury, is one way for the government to raise needed funds.
• It is safe because it is fully backed by the government and rarely does a government, including the Philippines, defaults on a debt security such as this. It is liquid because it can be traded in the secondary market prior to maturity.
• It is called Retail because at P5,000 (US$112) minimum investment, even individuals can invest on this type of financial instrument.

Terms of offer

•  5-Year RTB due 2015 - 5.875% per annum
•  7-Year RTB due 2017 - 6.625% per annum
• 10-Year RTB due 2020 - 7.250% per annum

Minimum investment
P5,000 and in multiples of P5,000 thereafter

Interest Payment
Quarterly

Offer Period
August 10 to 17, 2010

Issue Date
August 19, 2010


Joint issue managers and Joint issue coordinators
BDO Capital and Investment Corporation
Direct # 750-6274, 818-4135, 878-4119

BPI Capital Corporation
Direct # 816-9696, 816-9666, 845-5505, 845-5708

DBP
Direct # 818-9511 local 2351 or 2360, 830-0990, 819-1350

First Metro Investment Corporation
Direct # 241-4301 to 07, 858-7900

PNB Capital and Investment Corporation
Direct # 526-3131 local 2074 or 2078

RCBC Capital Corporation
Direct # 894-9827, 894-9511, 894-9452


My Financial IQ tells me that this financial instrument is much better than putting your money to a savings bank (where prevailing interest rate is about 0.25% to 0.75% per annum).  If you would like to invest, go to any of the above listed Joint issue managers / Joint issue coordinators.

Visit Philippines Bureau of Treasury for more details.
http://www.treasury.gov.ph/