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BTr lists record-high 5-year retail treasury bonds

MANILA: The Bureau of the Treasury (BTr) on Wednesday listed before the Philippine Dealing and Exchange Board its five-year retail treasury bonds (RTB) due on Feb. 28, 2029, which registered a record volume of PHP584.86 billion.

The debt paper has a coupon rate of 6.25 per year and is 19 times oversubscribed from the initial offering of PHP30 billion during the rate-setting auction on Feb. 13, 2024.

The BTr raised PHP212.72 billion during the rate-setting auction for RTB 30, while PHP372.14 billion was raised during the nine-day offer period that ended on Feb. 23.

A bulk of the funds submitted during the offer period, amounting to PHP243.45 billion, came from the Switch Program, which allowed holders of previously issued debt paper to swap for the new issuance; while PHP128.69 billion was raised as new money.

The initial target issuance was PHP400 billion but this was exceeded because of the over 30 percent participation for the bond swap and the 8,120 transactions from more than 40 countries, which gener
ated PHP663.56 million, made through the BTr’s online and app-based investment channels.

RTBs are intended for small investors since the minimum placement is PHP5,000 and additional investments is in increments of PHP5,000.

Finance Secretary Ralph Recto, in a statement, congratulated the BTr, saying the latest bond issuance ‘is truly a big win for both the government and our people.’

‘I am very much grateful for the support of the investing public, most especially our retail sector, for making the wise decision to invest their hard-earned money in low-risk government securities and take part in nation-building. Rest assured, the government will continue to support every Filipino in their journey towards financial freedom. We will use every peso invested by our people for public programs that ensure prosperity for their lives and the future of their children,’ he said.