After seeing the Philippines retail treasury bonds (RTB) advertisement, I look around for news related to this financial product. Apparently, this financial instrument (retail treasury bond) was already being discussed for several days already. No need to worry on the legitimacy of the offer. This financial product (retail treasury bond) is issued by the government, which is among the least riskiest as only the implosion of the government will cause for this financial instrument to remain unpaid.
P25B raised from retail treasury bonds
Ronnel Domingo
Philippine Daily Inquirer
First Posted 18:09:00 08/10/2010
MANILA, Philippines—The Bureau of Treasury raised on Tuesday P25 billion from retail treasury bonds in a price setting auction for five-year, seven-year and 10-year issues.
The five-year bond fetched 5.875 percent, the seven-year 6.625 percent, and the 10-year 7.25 percent.
Issue managers said they would recommend offering another P50 billion worth of the RTBs to the public, to be available under August 17.
Treasury plans three tenors for planned RTB issuance
Katrina Mennen A. Valdez
The Manila Times
August 3, 2010
The government said it plans to borrow money on five-, seven-, and 10-years’ notice through its planned retail Treasury bond (RTB) issuance.
In a text message on Monday, National Treasurer Roberto Tan said the government has engaged a syndicate of banks that include BDO Capital and Investment Corp., BPI Capital Corp., First Metro Investment Corp., Philippine National Bank, Rizal Commercial Banking Corp., and the state-owned Development Bank of the Philippines and Land Bank of the Philippines to arrange the issuance of the RTBs to be scheduled this month or in September.
“[The Bureau of Treasury] is considering to [issue] five-, seven- and 10-year tenors, while the timetable for the said RTBs is still being finalized,” Tan said.
Individuals can buy these RTBs for a minimum of $100 up to a maximum of $100,000.
This will be the government’s 12th retail debt paper sale, which aims to raise P20 billion to P30 billion to refinance maturing debts.
In April, the previous administration sold $500 million worth of multi-currency RTBs. The Treasury bureau also raised P114 billion from an RTB sale conducted on September 2009 to partially bridge its fiscal deficit.
The latest RTB issuance would help the government settle P36.47-billion worth of three-year bonds and P38.76 billion worth of five-year debt papers that would mature starting this month until September.
Although the total maturing debts have reached P75.23 billion, Tan said the government does not need to increase the size of its latest RTB issuance.
Finance Secretary Cesar Purisima said they are still studying whether the Treasury bureau could conduct a global bond or peso-bond sale right after the retail debt paper issuance.
“We would like to conduct the peso global bonds within the year. But we are still waiting for the perfect time, so that it would benefit us more,” Purisima said.
Treasury names arrangers of P30-B RTB issue
Ronnel Domingo
Philippine Daily Inquirer
Posted date: August 02, 2010
MANILA, Philippines—The government has given the go-ahead to a group of financial institutions to arrange the issuance of this year’s issuance of up to P30 billion in retail treasury bonds (RTBs), according to National Treasurer Roberto B. Tan.
The group included BDO Capital, BPI Capital, Development Bank of the Philippines, First Metro Investment Corp., Land Bank of the Philippines, Metropolitan Bank and Trust Co., Philippine National Bank and Rizal Commercial Banking Corp.
“The Bureau of the Treasury is considering to issue RTBs in tenors of five, seven and 10 years,” Tan said.
“The timetable [for the issuance] is being finalized,” the treasurer said, although he said last week the plan was to conduct the flotation this August.
Tan said the upcoming offering would be the 12th tranche of RTBs since 2001 and that the latest batch was meant to replenish the supply of the small-denominated debt paper since a big amount of previous issues would mature in the next few weeks.
Tan earlier said that the government was also looking into proposals for debt swaps covering bonds denominated in pesos and dollars as well as a maiden issue of peso-denominated bonds aimed at foreign investors.
Earlier this month, Deputy Treasurer Eduardo S. Mendiola said P75.23 billion in RTBs were maturing in August and September.
These include P36.47 billion in three-year bonds and P38.76 billion worth of five-year bonds.
Mendiola said that with the planned offering, the Treasury was making room for small investors who were not accommodated during previous floats of three- and five-year RTBs.
RTBs suit small investors because of the low minimum investment of P5,000.
While large companies and government-owned firms may also buy RTBs, government securities eligible dealers are directed to prioritize small investors.
Mendiola said the Treasury expected the same buyers to roll over their investments, adding that the exercise would help absorb too much liquidity in the financial market.
The last time the Treasury issued RTBs was in September last year when it raised more than P100 billion.
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