The Bureau of Treasury hopes to raise more funds from small-scale investors through the sale of retail treasury bonds (RTB).
RTBs are medium to long-term debt securities offered by government. It is part of the government’s savings mobilization program designed to make government securities available to retail investors.
They are fixed-income securities that put a fixed interest rate per annum over a specific period of time with a promise of return to the principal at the end of the term.
The RTB, which was offered from Nov. 16 to Nov. 26, is the 26th tranche the BoT offered. It has an annual interest rate of 4.6 percent and will mature on 2027.
National Treasurer Rosalla de Leon said the RTBs could help in the national economic recovery by financing government’s expenditures on the unemployed, micro, small, and medium enterprises, the country’s Covid-19 response, and various priority projects nationwide.
Apart from raising funds for the government’s priority projects, the government’s offering of RTBs also demonstrate its commitment to diversify funding sources, make government securities affordable and accessible to retail investors, promote financial literacy among Filipinos, develop the Philippine capital market via low-risk investment with higher yields than time deposits.
Minimum investment is P5,000 and in multiples of P5,000 thereafter.
Selling agents of the BoT were Development Bank of the Philippines, Landbank, Banco de Oro, Bank of the Philippine Islands, Chinabank, Metrobank, PNB, and Union Bank. – Rimaliza A. Opiña