Landbank eyes NG plan to issue RTBs for OFWs
“We are interested to become an underwriter andfinancial manager,” Landbank executive vice-president Alfonso Cruz said in an interview.
The Department of Finance (DOF) has said that it isplanning to issue retail treasury bonds next year specifically for OFWs but is still studying which currency is most appropriate for the offer.
The government is particularly looking for the most appropriate instrument to be issued and at the same time settling the problem on legal jurisdiction. Cruz said Landbank is interested in the fundraising activity as it has previously proposed the issuance of OFW bonds.
“We proposed it earlier. Our proposal was for roughly $200 million,” Cruz said. Finance Undersecretary and Acting National Treasurer Roberto Tan earlier said the issuance is likely to push through next year.
Tan also said the government has yet to choose the underwriters and financial managers for the issuance.The Bangko Sentral ng Pilipinas (BSP) said the government is eyeing to sell $500 million in RTBs.
It was the BSP which earlier urged the National Government to issue the bonds in an effort to help OFWS and their beneficiaries put their earnings in worthy investments. The BSP said the proposed bonds may be modeled after the government’s retail treasury bonds in order to avoid cross-border regulatory problems.
The government has been coming up with investment projects for OFWs to help them park their earnings in worthy long-term investments so that they would be able to save their money. OFWs and their families have caused alarm over the steady rise of the peso against the greenback, as this diminishes the value of their dollar earnings.
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