The Bureau of the Treasury (BTr) successfully issued last August 15, 2013, PhP150 billion worth of 10-year retail Treasury bonds (RTB). The RTBs, which are set to mature on August 2023 and carry a coupon rate of 3.25% per annum, were simultaneously listed on the same date at the Philippine Dealing Exchange Corporation (PDEx),marking the commencement of secondary trading for the bonds across all segments of the market, including retail and individual investors.
The BTr auctioned the RTBslast July 30, 2013, accepting an aggregate amount of PhP100 billion from submitted total tenders amounting to PhP271.59 billion, fetching a heftyninetimes (9X) bid-cover ratio based on the original offer amount of PhP30 billion.BTr subsequently allocated an additional PhP50 billion during the 8-day public offer periodwhich ended on August 12, 2013.Preliminary results of the primary offer period indicate an aggregate sale to retail investors of around 65% and to individual investors of around 49%.
Selling agents were required and directed by the BTr to sell down to retail investors at least 50% of their holdings and further sell down to individual investors at least 20% of their allocation. Thesenew features of the offering are geared towards achieving the BTr’sobjective to make the RTB moreaccessible to truly retail/individual savers.
Treasurer of the PhilippinesRosalia De Leon reiterated the government’s staunch commitment to develop the local capital markets and create investors out of the ordinary retail investors through the RTB issuance program. “This RTB offering gives ordinary Filipinos the investment opportunity to participate in the debt market and raise their savings and investment consciousness,” De Leon further added.
The RTB is a special offering program of the government intended for retail investors, especially individual savers. The bonds pay a quarterly coupon and may be subscribed to by the public in minimum denominations of PhP5,000.
The Land Bank of the Philippineswas designated as the Lead Issue Manager for the transaction.Joining Land Bank as Issue Managers were BDO Capital & Investment Corporation, BPI Capital Corporation, the Development Bank of the Philippines, First Metro Investment Corporation and SB Capital Investment Corporation.
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