P130-B raised through RTBs

WITH the growing investment appetite of the public, the Bureau of Treasury (BTR) raised on Wednesday the public offering value of the retail treasury bonds (RTBs) to P130 billion.

Rabboni Francis B. Arjonillo, president of First Metro Investment Corp., said on Wednesday during BTR’s Investors’ Briefing at Marco Polo Davao Hotel the amount this increased from P70 billion worth of bonds, the value raised a day before.

First Metro Investment Corp. is among the lead issue managers of these bonds along with state-controlled Land Bank of the Philippines.

As early as Tuesday when they start to offer the bonds, Arjonillo said they noted that there was already increase in orders. “There is a strong demand on the RTBs. At the auction (on Tuesday), we raised it to P70 billion from P30 billion. But now with the orders, the offering has been raised to additional of P60 billion,” he said.

The BTR originally wanted to float P30 billion worth of the bonds.

The public offering, the second under the administration of President Rodrigo R. Duterte, will end until April 6. Those who want to venture but failed to invest during the public offering period can still buy at the secondary market.

The first public offering under the Duterte administration was in Sept. last year, when the national government was able to issue P100 billion worth of bonds.

Alex V. Buenaventura, president and chief executive officer of Land Bank of the Philippines, said RTBs are risk-free investment instruments that offer a high yield. “Instead of putting your money in the banks with interest rate of about 1.5% in time deposit, it is best to invest in RTBs, which has higher interest rate at 4.25%,” he said.

These, he said, are also marketable securities, which give investors an option to sell.

National Treasurer Rosalia V. De Leon said they are offering RTBs to generate money domestically for the national coffers that would fund the different programs and projects of the government. By investing on RTBs, she said this would enable the public to help in nation building aside from paying their taxes.

This, she said, is to also reduce the country’s dependence on loaning from other countries.

“Government’s revenues are not enough to fund its needs. To grow the economy, we need to find other sources and fill in the deficit either by foreign exposure or domestic market,” De Leon said. “One of the ways is offering RTBs. We really want, especially the small investors, to help the government,” she said.

This is BTR’s 19th tranche to issue RTBs since 2001.  The bureau tapped First Metro Investment Corp. and Land Bank of the Philippines as joint lead issue managers and BDO Capital & Investment Corp., BPI Capital Corp., Development Bank of the Phils., China Bank Capital Corp. and SB Capital Corp. as joint issue managers for the RTB offering. (By Kristianne M. Fusilero)

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