Smaller T-bill offerings mulled

The government plans to issue small-denominated Treasury bills as part of its Small Investor Program to allow retail investors access to government securities traditionally bought only by banks and other institutional investors.

National Treasurer Sergio Edeza told reporters yesterday that it was re-launching the government’s Enhanced Small Investor Program (E-SIP) that would have the additional feature of Internet-based transactions.

According to Edeza, the Bureau of Treasury plans to issue Treasury bills in P5,000 denominations in volumes that would depend on the reaction and appetite of the market.

Ordinarily, T-bills are issued in P1-million lots, and sold to banks and other large investors that play in the Treasury bills market.

The government already has a similar program, the Retail Treasury Bonds, where bonds in denominations of P5,000 are sold also to small investors. However, the Treasury bills market has so far been inaccessible to small investors.

According to Edeza, the government’s first attempt at small-denominated T-bills generated around P500 million during the term of former National Treasurer Leonor Briones.

"We hope to surpass that," Edeza said. "Judging from the success of the RTBs, we think it will be possible to replicate and surpass even the RTB issue." – Des Ferriols