Bureau of Treasury scraps 10-year Treasury-bond auction
MANILA, Philippines - The Bureau of Treasury (BTr) has scrapped the sale of 10-year treasury bonds (T-bonds)worth P8.5 billion scheduled on Tuesday to give way to the auction of three, five-, and seven-year retail treasury bonds.
National Treasurer Roberto Tan said that the BTr would auction off P5 billion worth of three-year RTBs, P5 billion worth of five-year RTBs, and P5 billion worth of seven-year RTBs on Sept. 15.
The scheduled auction on Tuesday would set the yield of the three-year RTBs due 2012, five-year RTBs due 2014, and seven-year RTBs due 2016. The debt instruments would be sold to small local investors at a minimum amount of P5,000 starting Sept. 15 to Sept. 22.
The government has tapped Banco de Oro Universal Bank, BPI Capital, Development Bank of the Philippines, First Metro Investment Corp., Land Bank of the Philippines, Metropolitan Bank & Trust Co., and Rizal Commercial Banking Corp. as joint issue coordinators.
Tan earlier said the government intends to sell at least P25 billion worth of three-, five,- and seven-year RTBs to raise much needed funds to plug a widening budget deficit.
Last year, the government successfully raised P70 billion from the issuance of RTBs to small local investors .
The Philippines relies heavily on foreign and domestic borrowings to finance its budget deficit and at the same time pay its maturing financial obligations. – Iris Gonzales
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